On December 31, 2010, Jet Co. received two $10,000 notes receivable from customers in exchange for services rendered. On both notes, interest is calculated on the outstanding balance at the interest rate of 3% compounded annually and payable at maturity. The note from Hart Corp., made under customary trade terms, is due in nine months and the note from Maxx, Inc. is due in five years. The market interest rate for similar notes on December 31, 2010, was 8%. The compound interest factors are as follows:
Future value of $1 due in nine months at 3% 1.0225 Future value of $1 due in five years at 3% 1.1593 Present value of $1 due in nine months at 8% .944 Present value of $1 due in five years at 8% .680 Jet does not elect the fair value option for reporting its financial assets. At what amounts should these two notes receivable be reported in Jet’s December 31, 2010 balance sheet?
Hart Maxx

a. $ 9,440 $6,800

b. $ 9,652 $7,820

c. $10,000 $6,800

d. $10,000 $7,883