Easten Co. leased a new forklift on January1. This lease has the following details: o The lease agreement is for 10 years. o The annual payment of $5,000 is due at the beginning of each year. o Easten has the option to buy the forklift at the end of the lease for $1. o At the end of the lease, Easten may choose to return the forklift with no penalty. o This forklift sells for $32,000. o The interest rate implicit in the lease is 7%.  Easten follows ASPE and uses the effective interest rate method. 

What is the interest expense to be recorded for Year 1?