i think its either 7600 or 7700 please advise

On January 2, Year 1, a motorcycle dealer sells a motorcycle with an extended warranty for two years beyond the manufacturer's twoyear warranty and an agreement to service the vehicle for the first three years. The total transaction amount is $8,300. The extended warranty is estimated at 5 percent of the total price, less the amount of the service agreement, which is estimated to be $100 per year. How much revenue is recognized during the year ending December 31 , Year 1? Multiple Choice $8,300 $7,600 $7,700 $7,900