On January 1, 2013, Princess Corporation Leased Equipment to King

On January 1, 2013, Princess Corporation leased equipment to King Company. The lease term is eight years. The first payment of $675,000 was made on January 1, 2013. The equipment cost Princess Corporation $3,600,000. The present value of the minimum lease payments is $3,960,000. The lease is appropriately classified as a sales-type lease. Assuming the interest rate for this lease is 10%, how much interest revenue will Princess record in 2014 on this lease?

A) $261,000.
B) $328,500.
C) $325,350.
D) $293,850.