On January 1, 2021, Drake Corporation signed a ten-year noncancelable lease for certain machinery. The terms of the lease called for Drake to make annual payments of $220,000 at the end of each year for ten years with the title passing to Drake at the end of this period. The machinery has an estimated useful life of 15 years and no salvage value. Drake uses the straight-line method of depreciation for all of its fixed assets. Drake accordingly accounted for this lease transaction as a finance lease. The lease payments were determined to have a present value of $1,342,016 at an effective interest rate of 8%. With respect to this lease, Drake should record for 2021