Hello, I currently need helping choosing the correct interest entry. I've attached the problem below, and thank you for your help and time.

On January 1, 2021, Calloway Company leased a machine to Zone Corporation. The leose qualifes as a sales-type lease. Calloway paid $240,000 for the machine and is leasing it to Zone for $34,000 per year an amount that will return 10% to Callowoy. The present value of the lease payments is $240,000 The leose poyments are due each Jonuary 1, beginning in 2021 . What is the oppropriate interest entry on December 31,2021 ? Multiple Choice