On January 1, 2019, Silkar Corporation signed a five-year noncancelable lease for equipment. The terms of the lease called for Silkar to make annual payments of 180,000 at the beginning of each year for five years with title passing to Silkar at the end of this period. The equipment has an estimated useful life of 7 years and no salvage value. Silkar uses the straight-line method of depreciation for all of its fixed assets. Silkar accordingly accounts for this lease transaction as a finance lease. The minimum lease payments were determined to have a present value of 760,678 at an effective interest rate of 10%. With respect to this lease, for 2020 Silkar should record

interest expense of 75,058.

interest expense of 44,764.

interest expense of 45,875

interest expense of 62,764.

interest expense of 57,058.