Owner Company leased computer equipment to User Company on January 1, 20X1. Owner Company had purchased this computer equipment for $12,000. The computer equipment has an expected useful life of five years. The terms of the lease require annual payments of $5,000 for five years with the first payment being made on the lease signing date (January 1, 20X1). The four subsequent lease payments are made on December 31 of 20X1, 20X2, 20X3, and 20X4. The interest rate used in computing the lease payments is 10% compounded annually. Owner Company is accounting for this lease as a SALES-TYPE LEASE. How much INTEREST REVENUE should Owner Company report in 20X2 (the SECOND year)? Note: Round your calculations to the nearest dollar. $1,787 $3,415 $2,085 $1,243