On January 1, 2020, Mill Company sold a building and received as consideration 1,000,000 cash and a 4,000,000 noninterest bearing note due on January 1, 2023. There was no established exchange price for the building and the note had no ready market. The prevailing rate of interest for a note of this type on January 1, 2020 was 10%. The present value of 1 at 10% for three periods is 0.75. What amount of interest revenue should be reported for 2021?

a. 370, 000

b. 400, 000

c. 300, 000

d. 330, 000

Give the solutions and journal entry. Additional information: Assume that the building has a cost of 10,000,000 and an accumulated depreciation of 8,000,000.