On January 1, 2020, TT Corporation invested in Inci Inc.s two-year, 10% notes, with interest receivable quarterly. TT entered into a two-year interest rate swap agreement on January 1, 2020 and designated the swap as a fair value hedge. The agreement called TT to make payment based on a 10% fixed interest rate on a notional amount of $100,000 and to receive interest based on a floating interest rate. The contract called for cash settlement of the net interest amount quarterly. Floating (LIBOR) settlement rates were 10% at January 1, 8% at March 31, and 6% June 30, 2020. The fair values of the investment in notes and swap agreement are as follows:

January 1 March 31 June 30

Fair value of interest rate swap 0 $6,200 $12,000 Fair value of the investment in notes $100,000 $106,200 $112,000

What will TT record on June 30?

	a.	$2,500, as Other Comprehensive Income
	b.	$2,500, as interest revenue in the Income Statement
	c.	$1,500, as interest revenue in the Income Statement
	d.	$5,800, as interest revenue in the Income Statement
	e.	$1,500, as Other Comprehensive Income