Ferguson Company issues a one-year interest-bearing note in return for inventory purchased from Allegri Company. The note has stated rate of 5% and face value of $3,220,000. Interest is paid in every 3 months. After the second interest payment is made, Ferguson and Allegri agree to settle the note. Ferguson gives Allegri securities with a fair value of $3,125,000 for the settlement. The carrying value of the securities is equal to their fair value. Remaining total interest expense until maturity was $177,000 on the day of settlement. Ignoring income taxes, what is the effect of this settlement on Fergusons stockholders equity? Multiple Choice

Decrease of $1,500

Decrease of $82,000

Decrease of $98,000

No effect

Increase of $95,000