Olaf Inc. leased machinery from Elsa-n-Anna Inc. on July 1, 2021. The lease was recorded as a finance lease. The present value of the lease payments discounted at 8% was $60 million. Ten annual lease payments of $8 million are due each July 1 beginning July 1, 2021. What amount of interest expense from the lease should Olaf report in its December 31, 2021, income statement?

Group of answer choices

$2,340,000

$1,560,000

$2,080,000

$1,725,000

None of the options listed.