On January 1, 2020 Sunrider Corporation signed a five-year noncancelable lease for equipment. The terms of the lease called for Sunrider to make annual payments of 200,000 at the beginning of each year for five years beginning on January 1, 2020 with the title passing to Sunrider at the end of this period. The equipment has an estimated useful life of 7 years and no salvage value. Sunrider uses the straight-line method of depreciation for all of its fixed assets. Sunrider accordingly accounts for this lease transaction as a finance lease. The minimum lease payments were determined to have a present value of 873,927 at an effective interest rate of 10%. In 2021, Sunrider should record interest expense of 63,397. 49,737. 43,397. 54,132 69,737.