On January 1, 2015, Jacobs Company sold property to Dains Company which originally cost Jacobs $760,000. There was no established exchange price for this property. Dains gave Jacobs a $1,200,000 zero-interest-bearing note payable in three equal annual installments of $400,000 with the first payment due December 31, 2015. The note has no ready market. The prevailing rate of interest for a note of this type is 10%. What is the amount of interest income that should be recognized by Jacobs in 2015, using the effective-interest method?

		A. $0
		B. $40,000
		C. $99,480
		D. $120,000