On January 2, 2021,Crane, Inc. signed a10-year noncancelable lease for a heavy duty drill press. The lease stipulated annual payments of $290000starting at the beginning of the first year, with title passing toCraneat the expiration of the lease.Cranetreated this transaction as a finance lease. The drill press has an estimated useful life of15years, withnosalvage value.Craneuses straight-line depreciation for all of its plant assets. Aggregate lease payments were determined to have a present value of $1861121, based on implicit interest of9%.

In its 2021 income statement, what amount of interest expense shouldCranereport from this lease transaction?

$141401

$153075

$186112

$0