On January 1, 2019, Allen Inc. acquired a piece of machinery by issuing a 3-year noninterest bearing note payable. Allen Inc. recorded the following entry:

	Dr.	Cr.
Machinery	158,766
Discount on Note Payable	41,234
Note Payable		200,000

The implicit interest rate for this transaction is 8%. What is the amount of interest recognized in 2020?

$0

$12,701

$13,717

$12,225

$16,000