Hornet Motors Purchased a Custom-Made Metal Press for Use in Repairing

Hornet Motors purchased a custom-made metal press for use in repairing wrecked cars. The press was installed on January 2, 2018. The press had no known market value. Hornet agreed to pay $300,000 on December 31, 2020 and asked for a 2% interest rate. At the time, Hornet's incremental borrowing rate was 7%. The seller agreed to the terms and requested interest payments on December 31 each year. What is the carrying value of the note at the end of 2018? (Round any intermediary calculations and your final answer to the nearest dollar.)

A) $272,879
B) $260,635
C) $285,981
D) $300,000