Barge Company sells goods to Tug Corp. in exchange for a $135,000 3-year note bearing 8% interest. Interest is payable each year. The market rate of interest for a transaction of this nature for Tug is 12%. What is the carrying value of the note receivable at the time of the sale (rounded to the nearest dollar)?

* the present value of an ordinary annuity of 1 at 8% for 3 year is 2.57710

the present value of an ordinary annuity of 1 at 12% for 3 years is 2.40183

the present value of a single-sum of 1 at 8% for 3 year is 0.79383

the present value of a single-sum of 1 at 12% for 3 years is 0.71178

a. $32,400 b. $122,030 c. $96,090 d. $135,000