Technold Inc. sells computer systems. Technold lease computers to Lone Star Company on January 1, 2016. The manufacturing cost of the computers was $21 million

This non-concelable lease had the following terms:

Lease payments: $2,845,401 semianually; first payment at January 1, 2016; remaining payments at June 30 and December 31 each year through June 30, 2020

Lease term: 5 years (10 semi-annual payments.)

No residual value; no bargin purchase option

Economic life of equipment: 5 years

Implicit interest rate and lessee's Incremental borrowing rate: 3% semi-annually.

Fair value of the computers at January 1, 2016: $25 million

Collectibility of the rental payments is reasonably assured, and there are no lessor costs yet to be incurred.

What is the interest revenue that Technold would report on this lease in its 2016 income statement?

A.) 0

B.) $714,642

C.) 1,263,853

D.) None of these answer choices is correct