Ashley Inc. buys machinery and equipment from the EAJ corporation for a $200,000 note due three years from today. The note does not pay interest only the final maturity payment will be made. Ashey determines a fair rate of interest on the note is 8% on an annual basis. What is the initial carrying amount of the note payable on Ashley's books.

Group of answer choices

The note's initial carrying amount on Ashley's balance sheet will depend on how much EAJ records the Note Receivable for on their balance sheet.

`$152,000

$158,766

$200,000