On January 1, 2016 Mary company leased equipment, signing a five-year lease that requires annual lease payments of 20,000. The lease qualifies as a capital lease. The payments are made at year-end, and the first payment will be made at December 31, 2016. In addition, Mary guarantees the residual value to be 8,000 at the end of the lease term. Mary correctly uses the lessor's implicit rate, which is 12%. The present value factor for five periods at 12% are folloiws.

pv of$1 .567427

pv of ordinary annuity 3.604776

What is the amount of interest expense with the leased equipment for the year ending December 31, 2016?