On December 31, 2020, Marigold Corp. purchased a machine from Cullumber Company in exchange for a zero-interest-bearing note requiring 8 payments of $205,000. The first payment was made on December 31, 2020, and the others are due annually on December 31. At date of issuance, the prevailing rate of interest for this type of note was 11%.

On Marigold's December 31, 2020 balance sheet, the net note payable to Cullumber is

answer choices

a.$994,952

b.$1,212,952

c.$1,083,024

d.$1,171,000