Deefer Limited Sold an Item of Machinery on 1 July

Deefer Limited sold an item of machinery on 1 July 2014 on the following terms:
• Initial payment of $25 000
• Annual payments of $25 000 for 5 years (total $125 000) .

The buyers incremental rate of interest is 7.5% and the present value of the future annual payments is $101 147.
At the time of sale of the machine Deefer would recognise revenue of:

A) $25 000
B) $125 000
C) $126 147
D) $150 000