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7 Refer to the following lease amortization schedule. The 10 payments are made annually starting with the beginning of the lease. Title does not transfer
7 Refer to the following lease amortization schedule. The 10 payments are made annually starting with the beginning of the lease. Title does not transfer to the lessee and there is no purchase option or guaranteed residual value. The asset has an expected economic life of 12 years. The lease is noncancelable. Cash Payment Effective Interest Decrease in balance Payment 1 2 3 4 5 6 7 8 9 10 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 6,996 6,436 5,831 5,178 4,472 3,710 2,886 ? ? 14,000 7,004 7,564 8,169 8,822 9,528 10,290 11,114 ? ? Outstanding Balance 101,456 87,456 80,452 72,888 64,719 55,897 46,369 36,079 24,965 ? ? What amount would the lessee record as annual amortization on the right-of-use asset using the straight-line method? (Round your answer to the nearest whole dollar.)
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