On January $1,20$X$4,$ Harrow Co$.$ as lessee signed a $5-$year noncancelable equipment lease with annual payments of $$100,000$ beginning December $31,20$X$4.$ Harrow treated this transaction as a finance lease. The five lease payments have a present value of $$379,000$ at January $1,20$X$4$ based on interest of $10\%.$

What amount should Harrow report as interest expense for the year ending December $31,20$X$4?$

$$0$

$$37,900$

$$24,200$

$$27,900$