SDC Company is100% owned by Tamika. On January 1 of the currentyear, SDC makes a loan of $27,000 to Tamika. The loan carries interest at the rate prescribed within the tax regulations. Tamika pays $10,800 on the loan on June 30 of the currentyear, $10,800 on September 30 of the followingyear, and pays the balance of $5,400 on November 30 of the following year. For the currentyear, how much of the loan will Tamika recognize in herincome?

Choose the correct answer.

A.

$16,200

B.

$0

C.

$27,000

D.

$8,100