9. IBM leases equipment to Sharon Swander Company. The non-cancelable term is 6 years beginning January 20X1, with equal rental payments of $38,737 at the beginning of each year. Executory costs of $1,000 are not included in the lease payment. The lease does not contain a bargain purchase option but DOES transfer title at the end of the lease term. The equipment has a useful life of 7 years. The lessee's incremental borrowing rate is 10%, and the lessor's implicit interest rate 8% is not known to the lessee. What is the amount of amortization expense for scal year 20X1