On January 1, 2018, Sameer Corporation signed a five-year non-cancelable lease for equipment. The terms of the lease called for Sameer to make annual payments of 200,000 at the beginning of each year for five years beginning on January 1, 2018 with the title passing to Sameer at the end of this period. The equipment has an estimated useful life of 7 years and no salvage value. Sameer uses the straight-line method of depreciation for all of its fixed assets. Sameer accordingly accounts for this lease transaction as a finance lease. The minimum lease payments were determined to have a present value of 833,972 at an effective interest rate of 10%. In 2018, Sameer should record interest expense of. Single choice.