On January 1, 2012, Ball Co

On January 1, 2012, Ball Co.exchanged equipment for a $160,000 zero-interest-bearing note due on January 1, 2015.The prevailing rate of interest for a note of this type at January 1, 2012 was 10%.The present value of $1 at 10% for three periods is 0.75.What amount of interest revenue should be included in Ball's 2013 income statement?

A) $0
B) $12,000
C) $13,200
D) $16,000