Steam Co. acquired equipment under a finance lease for 6 years. Minimum lease payments were $60,000 payable annually at the year's end. The interest rate was 5% with an annuity factor for 6 years of 5.0757. The present value of the payments was equal to the fair value of the equipment. What amount should Steam report as interest expense at the end of the first year of the lease?

Group of answer choices

$0

$3,000

$15,227

$18,000