On January 1, 2012, Ott Co. sold goods to Flynn Company. Flynn signed a zero-interest-bearing note requiring payment of $90,000 annually for seven years. The first payment was made on January 1, 2012. The prevailing rate of interest for this type of note at date of issuance was 10%. Information on present value factors is as follows:

Present Value Present Value of Ordinary
Period of 1 at 10% Annuity of 1 at 11%
6 .5645 4.3553
7 .5132 4.8684

Ott should record sales revenue in January 2012 of

A) $438,156.

B) $321,300.

C) $481,972.

D) $391,977.