On January 1, 2015, Oxford Company finished consultation services and accepted in exchange a promissory note with a face value of $600,000 and a due date of December 31, 2017. The stated rate of interest is 5% with interest receivable at the end of each year through 12/31/17. Assume an effective interest rate of 10% is implicit in the agreed-upon price. The effective amortization method is used. Oxford's interest revenue to be reported on the 2015 income statement is:

Select one:

a.

$30,000

b.

$60,000

c.

$52,540

d.

$164,603

e.

$175,321