On January 1, 2016, Calloway Company leased a machine to Zone Corporation. The lease qualifies as a direct financing lease. Calloway paid exist220, 000 for the machine and is leasing it to Zone for exist39, 000 per year, an amount that will return 12% to Calloway. The present value of the minimum lease payments is exist220, 000. The lease payments are due each January 1, beginning in 2016. What is the appropriate interest entry on December 31, 2016