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Sunland Co . leased equipment to Sarasota Co . on July 1 , 2 0 2 5 , and properly recorded the sales - type

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Sunland Co. leased equipment to Sarasota Co. on July 1,2025, and properly recorded the sales-type lease at $145000, the present value of the lease payments discounted at 10%. The first of eight annual lease payments of $21700 due at the beginning of each year of the lease term was received and recorded on July 3,2025. Sunland had purchased the equipment for $107000. What amount of interest revenue from the lease should Sunland report in its 2025 income statement?
$5350
$0
$6165
$7250
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