Teller Inc. sells computer systems. Teller leases computers to TwoStar Company on January 1, 2021. The manufacturing cost of the computers was $12 million. This noncancelable lease had the following terms:

Lease payments: $2,466,754 semiannually; first payment at January 1, 2021; remaining payments at June 30 and December 31 each year through June 30, 2025.

Lease term: five years (10 semiannual payments).

No residual value; no purchase option.

Economic life of equipment: five years.

Implicit interest rate and lessee's incremental borrowing rate: 5% semiannually.

Fair value of the computers at January 1, 2021: $20 million.

What is the interest revenue that Teller would report for this lease in its 2021 income statement?

A) $0.

B) $1,673,820.

C) $876,662.

D) None of these answer choices is correct.

Can you help with the explanation on how to do this? please