42. The Hinoba-an Department Store wishes to discount two notes receivable arising from the sale of merchandise in order to meet some maturing obligations. Both notes have a face amount of P50,000 each and are due in one year. Note A is a non-interest bearing note while Note B is to be paid with an interest of 12%. The bank rate in discounting notes is 12%. Assuming that the notes were discounted ten months prior to maturity, the proceeds from both notes discounted is a. P94,280 c. P 95,400 b. P93,280 d. P103,880