The following information relates to Wilson, Inc.$\text{'}$s equipment lease with an inception date of January $1$:

Fair value of equipment at lease inception, $$91,200$

Lease term, $4$ years

Economic life of property, $5$ years

Implicit interest rate, $6\%$

Annual lease payment due on December $31,$$$25,600$

Present value of the lease payments, $$88,707$

The equipment reverts back to the lessor at the end of the lease term.

How much is interest expense on the lease for the first year?

Select one:

a$.$ $$2,736$

b$.$ $$5,472$

c$.$ $$5,322$

d$.$ $$1,331$