Weezy Co. leased equipment to KimmyK Inc. on July 1, 2019 that it originally purchased for $110,000. Weezy properly recorded the lease as a sales-type lease receivable equal to $135,000 (the present value of the lease payments discounted at 10%). The first of eight $20,000 annual lease payments, due at the beginning of each year, was received by Weezy on July 3, 2019. What amount of interest revenue from the lease should Weezy report in its 2019 income statement?

1. a. $0
2. b. $5,750
3. c. $5,500
4. d. $6,750