Determine how much interest income Later Federal Loan Company, a cash basis taxpayer, must recognize on each of the following loans in 2018:

a.  A $10,000, 8.5%, 6-month loan made on October 1, 2018. The principal and interest are due on April 1, 2019.

b.  A $10,000, 6-month loan, discounted at 8% on October 1, 2018. Later gives the borrower $9,615, and the borrower must repay the $10,000 face amount on April 1, 2019.

c. A $10,000, 2-year loan, discounted at 6% on October 1, 2018. Later gives the borrower $8,900; the $10,000 face amount is to be repaid on October 1, 2020.