Real company signed a five-year noncancelable lease for equipment on January 1, 2017. The annual lease payment is $160 at the beginning of each year for five years beginning on January 1, 2017 with the title passing to Real company at the end of this period. Real accounts for this lease transaction as a finance lease. The lease payments were determined to have a present value of $667 at an effective interest rate of 10%. In 2017, Real should record interest expense of (round your answers to the nearest dollar)

	A.	$51.
	B.	$63.
	C.	$70.
	D.	$137.
	E.	none of these answers is correct.