On January 1, 2015, Ball Co

Multiple Choice

On January 1, 2015, Ball Co.exchanged equipment for a $200,000 zero-interest-bearing note due on January 1, 2018.The prevailing rate of interest for a note of this type at January 1, 2015 was 10%.The present value of $1 at 10% for three periods is 0.75.What amount of interest revenue should be included in Ball's 2016 income statement?

A) $0
B) $15,000
C) $16,500
D) $20,000