On January 1, 2007, Abel Co

Multiple Choice

On January 1, 2007, Abel Co.exchanged equipment for a $160,000 noninterest-bearing note due on January 1, 2010.The prevailing rate of interest for a note of this type at January 1, 2007 was 10%.The present value of $1 at 10% for three periods is 0.75.What amount of interest revenue should be included in Abel's 2008 income statement?

A) $0
B) $12,000
C) $13,200
D) $16,000