On January 1, 2013, Calloway Company leased a machine to Zone Corporation. The lease qualifies as a direct financing lease. Calloway paid $290,000 for the machine and is leasing it to Zone for $40,000 per year, an amount that will return 10% to Calloway. The present value of the minimum lease payments is $290,000. The lease payments are due each January 1, beginning in 2013. What is the appropriate interest entry on December 31, 2013?