On January 1, 2021, Mumbleford & Sons Co. sold equipment to Mulligan Care Service in exchange for a zero-interest bearing note. The note has a face value of $110,000, with payment due in 12 months. The imputed interest rate is 10%. The fair value of the equipment on the date of sale was $100,000. The amount of revenue to be recognized on this transaction in 2021 is

Select one:

a. $110,000 sales revenue.

b. $100,000 sales revenue.

c. $100,000 sales revenue and $10,000 deferred revenue.

d. $100,000 sales revenue and $10,000 interest revenue.