On 1/1/20, XYZ lent $12,860 to PPP in exchange for a $15,000 note receivable with no stated interest rate and due date of 3/30/20. The effective interest rate in the market at 1/1/20 was 8% and at 3/30/20 it was 9%. Determine the interest income to be reported in the statement of income and expenses for the period ending March 30, 2020.

Select one:

to. $1,157.4

b. $2,140

c. $1,028.8

d. $1,200