Sheephead Company sells land with a book value of $175,000 to Drum Corp. in exchange for a $280,000 zero-interest-bearing note payable in 3 years. The market rate of interest for a transaction of this nature for Drum is 8%. What is the amount of the notes receivable less the unamortized discount at the time of the sale rounded to the nearest dollar? The present value of 1 at 8% for 3 years is .7938 and the present value of an ordinary annuity of 1 at 8% for 3 years is 2.5771.

a.$280,000

b.$450,993

c.$222,264

d.$138,915