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Harry's Inc. issued a four-year, $75,000, non-interest-bearing note to a customer on January 1, Year 6. Harry also agrees to sell inventory to the customer

Harry's Inc. issued a four-year, $75,000, non-interest-bearing note to a customer on January 1, Year 6. Harry also agrees to sell inventory to the customer at reduced rates over a five-year period. Sales are to be evenly spread over the five-year period. Harry's incremental interest rate is 8%, and the present value of the note is $55,125. What is Harry's sales revenue connected with the note in Year 8? 


a. There is no sales revenue on a note payable. 


b. $15,000 


c. $3,975 


d. $4,974

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