On 1-1-2021, Solloman Corporation (lessor) agrees to rent machinery to the Myreck Company (lessee). It is a five (5) year noncancelable lease requiring Myreck to pay Solloman $100,000 every 1-1 during the lease period (i.e., 2021-2025). The machinery has an estimated economic life of 5 years with an expected residual value of $0 at the end of that time (i.e., 12-31-2025). The lessor's implicit rate is 8% per year; this rate is known to the lessee. This is a finance lease for Myreck (lessee).

What would be the interest expense reported on Myreck's 2021 income statement as a result of the lease ?

Group of answer choices

37,908

31,942

26,497

34,497

25,274

41,699

26,791

43,257

36,448

31,699

48,448

20,791