In Emme’s 2010 income statement, what amount should be reported as interest income?

a. $ 9,000

b. $45,000

c. $50,000

d. $60,000 Items are based on the following:

On January 2, 2010, Emme Co. sold equipment with a carrying amount of $480,000 in exchange for a $600,000 noninterest-bearing note due January 2, 2013. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type at January 2, 2010, was 10%. The present value of $1 at 10% for three periods is 0.75.