On July 1, 2017, Renaud Company finished architectural design services and accepted in exchange a promissory note with a face value of $300,000 and a maturity date of June 30, 2021. The stated rate of interest is 6% with interest receivable each June 30 through the maturity date. An effective interest rate of 12% is implicit in the agreed-upon price. The effective amortization method is used.

Renauds total interest revenue to be recorded on the income statements during the years 2017 through 2021 will be approximately:

Select one:

a.

$135,757

b.

$72,000

c.

$126,672

d.

$134,371

e.

$162,000