On January 1, 2021, Calloway Company leased a machine to Zone Corporation. The lease qualifies as a sales-type lease. Calloway paid $260,000 for the machine and is leasing it to Zone for $33,000 per year, an amount that will return 7% to Calloway. The present value of the lease payments is $260,000. The lease payments are due each January 1, beginning in 2021. What is the appropriate interest entry on December 31, 2021?