On May 31, 20x5, Fox Co. gave Owl Co. a $400,000, 11% loan. Fox paid Owl proceeds of $388,000 after the deduction of a $12,000 nonrefundable loan origination fee. Principal and interest are due in 5 annual installments, beginning May 31, 20x6. The repayments yield an effective interest rate of 11% at a present value of $400,000 and 12.4% at a present value of $388,000. What amount of income from this loan should Fox report in its 20x5 income statement?