On October 23, 2006, Pastore Corporation Loaned $100,000 to Its

On October 23, 2006, Pastore Corporation loaned $100,000 to its subsidiary, Selma Company, on a 60-day, 12% promissory note. On November 4, 2006, Pastore discounted the Selma note at Second State Bank at a discount rate of 15%. The cash proceeds of the discounting is computed as:

A) $100,000 - ($100,000 x 0.15 x 12/360)
B) $102,000 - ($102,000 x 0.15 x 12/360)
C) $102,000 - ($102,000 x 0.15 x 48/360)
D) $100,000 - ($100,000 x 0.15 x 48/360)