Rosewood Company made a loan of $12,000 to one of the company’s employees on April 1, 2016. The one-year note carried a 6% rate of interest.

Rosewood Company made a loan of $12,000 to one of the company’s employees on April 1, 2016. The one-year note carried a 6% rate of interest. The amount of interest revenue that Rosewood would report in 2016 and 2017, respectively would be:

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