On January 1, 2017, Ott Co. sold goods to Flynn Company. Flynn signed a zero-interest-bearing note requiring payment of $200,000 annually for seven years. The first payment was made on January 1, 2017. The prevailing rate of interest for this type of note at date of issuance was 10%. Information on present value factors is as follows:

		Present Value	Present Value of Ordinary
Period		of 1 at 10%	Annuity of 1 at 10%

6	.5645	4.3553
7	.5132	4.8684

Ott should record sales revenue in January 2017 of

Question 5 options:

a)

$871,060.

b)	$1,071,048.

c)

$714,000.

d)

$973,680.