What is the answer

Question 12 (1 point) On January 1, Year 3, Fletcher Machinery (Fletcher) sold a piece of equipment to Custom Draperies (Custom) in exchange for a $120,000 non-interest bearing note receivable due on January 1, Year 5. On January 1, Year 3, the prime interest rate was 7.2%. Fletcher's term loans have an 8% interest rate, and Customer has an incremental borrowing rate of 8.8%. Fletcher reports under IFRS. At which one of the following amounts will the note receivable be recorded in the books of Fletcher on January 1, Year 3? a) $101,373 O b) $102, 881 O c) $104,422 O d) $120,000