On January $2,2025,$ Sunland, Inc. signed a ten$-$year noncancelable lease for a heavy duty drill press. The lease stipulated annual payments of $$340000$ starting at the beginning of the first year, with the title passing to Sunland at the expiration of the lease. Sunland treated this transaction as a finance lease. The drill press has an estimated useful life of $15$ years, with no salvage value. Sunland uses straight$-$line depreciation for all of its plant assets. Aggregate lease payments were determined to have a present value of $$2222596,$ based on an implicit interest of $11\%.$

In its $2025$ income statement, what amount of interest expense should Sunland report from this lease transaction?

$$ $$0$

$$170000$

$$207086$

$$204000$