Palma Co. leased equipment to Dorothy Co. on July 1, 2020, and properly recorded the sales-type lease at 125,000, the present value of the lease payments discounted at 10%. The first of eight annual lease payments of 27,000 due at the beginning of each year of the lease term was received and recorded on July 1, 2020. Palma had purchased the equipment for 110,000. What amount of interest revenue from the lease should Palma report in its 2020 income statement?

0 5,750 4,900 5,500 6,750