Phipps Company borrowed $25000 cash on October 1 2010 andsigned a six-month 8% i

Phipps Company borrowed $25000 cash on October 1 2010 andsigned a six-month 8% interest-bearing note payable with interestpayable at maturity. Assuming that no adjusting entries have beenmade during the year the amount of accrued interest payable to bereported on the December 31 2010 balance sheet is which of thefollowing?A) $250B) $300C) $500D) $750