On January $1,$ Year $1,$ Whitefish Leasing Company entered into a direct$-$financing lease with Quigly Company. The lease agreement calls for five equal annual payments of $$85,000$ at the beginning of each year with the first payment due on January $1,$ Year $1.$ The leased property has an estimated residual value of $$10,000,$ which Quigly does not guarantee. The property remains the property of Whitefish at the end of the lease term. Whitefish desires a $12\%$ rate of return. Present value factors for a $12\%$ interest rate are as follows:

Present value of $$1$ for $n=1$

Present value of $$1$ for $n=5$

Present value of an ordinary annuity for $n=5$

Present value of an annuity due for $n=5$

$0\mathrm{.}892857$

$0\mathrm{.}567427$

$3\mathrm{.}604776$

$4\mathrm{.}037349$

What is the amount of interest revenue that Whitefish should recognize on the lease for the year ended December $31,$ Year $1?($Round the answer to the nearest dollar.$)$

a$.$ $$30,981$

b$.$ $$41,862$

c$.$ $$27,250$

d$.$ $$31,662$