On March 1, 2015, Vantage Services issued a 5% long-term notes payable for $15,000. It is payable over a 3-year term in $5,000 annual principal payments on March 1 of each year plus interest, beginning March 1, 2016. Each yearly instalment will include both principal repayment of $5,000 and interest payment for the preceding one-year period. On March 1, 2016, ________.
a. Vantage must accrue $5,000 of Interest Expense
b. Vantage must accrue for the coming $5,000 as current portion of principal payment
c. Vantage must pay out $750 of Interest Expense to the note holder
d. Vantage will receive $5,000 as an instalment payment