On the first day of 20X1, ABC signed a lease contract and agreed to make ten annual payments of 647.52 in exchange for a ten-year right of use. Each annual payment is due at the end of the year. On the day that the contract was signed, the market rate of interest was five percent and the present value of the payments was 5,000. With respect to the lease, how much interest expense did ABC recognize in 20X1? Assume the lease is a finance lease.

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