On January 1, 2008, Lex Co

Multiple Choice

On January 1, 2008, Lex Co. sold goods to Eaton Company. Eaton signed a noninterest-bearing note requiring payment of $80,000 annually for seven years. The first payment was made on January 1, 2008. The prevailing rate of interest for this type of note at date of issuance was 10%. Information on present value factors is as follows:
Lex should record sales revenue in January 2008 of

A) $428,419.
B) $389,472.
C) $348,424.
D) $285,600.