Indicate the Best Answer for Each Question in the Space

Indicate the best answer for each question in the space provided.
On November 30, Year 1, Central Food purchased two trucks for a total of $140,000, issuing a one-year, 6% note payable, all due at maturity. The interest on this loan is stated separately.
-Refer to the above data. What is the amount of interest expense Central Food's recognizes on this note in Year 2?

A) $700.
B) $8,400.
C) $7,700.
D) $1,400.