Karla Salons leased equipment from Smith Co. on July 1, 2021, in a finance lease. The present value of the lease payments discounted at 8% was $61,600. Ten annual lease payments of $8,500 are due each year beginning July 1, 2021. Smith Co. had constructed the equipment recently for $53,500, and its retail fair value was $61,600. What amount of interest revenue from the lease should Smith Co. report in its December 31, 2021, income statement? Multiple Choice $8,500. $3,080. $2,124. $4,928.