On September 1, 20A, Dawn Equipment signed a one-year, 7% interest-bearing note payable for $5,000. Assuming that Dawn maintains its books on a calendar year basis, the amount of interest expense that should be reported in the 20B income statement for this note (rounded to the nearest dollar) would be
a. $267.
b. $400.
c. $233.
d. $300.
e. $ -0-.