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On January 1, 2020. TALA Company leases a property fromALAT Company with the following terms: Annual rent (payable every year end)220,000 Lease term5 years Purchase

On January 1, 2020. TALA Company leases a property fromALAT Company with the following terms:

Annual rent (payable every year end)220,000

Lease term5 years

Purchase option30,000

Implicit interest rate12%

Useful life of the property8 years

On January 1, 2022, it was ascertained thatTALACompany willno longer exercise the purchase option and the annual rent will be increased by 5% starting January 1, 2022.

Question:How much is the interest expenseon December 31, 2024?

Format of answer shouldbe:000,000

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