Exhibit 14-11 Hernandez, Ltd

Multiple Choice

Exhibit 14-11 Hernandez, Ltd.issued a three-year, $100, 000, non-interest-bearing note to a customer on January 1, 2010.Hernandez also agrees to sell inventory to the customer at reduced rates over a five-year period.Hernandez's incremental interest rate is 10%, and the present value of the note is $75, 132.
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Refer to Exhibit 14-11.Hernandez's sales revenue connected with the note in 2010 is

A) $4, 974
B) $8, 289
C) $ 0; there is no sales revenue on a note payable
D) $7, 513