R Company Was Indebted to a Inc

Multiple Choice

R Company was indebted to A Inc.at January 1, 2014.The note called for a $25,000 payment to be made on December 31, 2014 and also on December 31, 2015.The note was non-interest bearing yet 10% was the prevailing rate at the time the note was issued.What is the book value of the note on R's January 1, 2014 balance sheet (rounded) ?

A) $50,000
B) $38,962
C) $47,727
D) $43,388
E) $47,500