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 6% with interest receivable at the end of each year through 12/31/17. Assume an effective interest rate of 8% is implicit in the agreed-upon price. The effective amortization method is used.

Oxfords journal entry on 1/1/15 will record approximately what amount of service revenue?

Select one:

a.

$569,074

b.

$632,076

c.

$600,000

d.

$588,889

e.

$611,320