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On January 1, year 1, Harrow Co. as lessee signed a five-year noncancelable equipment lease with annual payments of $100,000 beginning December 31, year 1. Harrow treated this transaction as a capital lease. The five lease payments have a present value of $379,000 at January 1, year 1, based on interest of 10%. What amount should Harrow report as interest expense for the year ended December 31, year 1?