A firm enters into a 5-year lease for new equipment. The equipment has an economic life of 8 years. The title passes to the lessee at the end of the lease. The firm records a right of use asset of $120,000. The incremental borrowing rate of the lessee is 5%.

What amount of amortization does the firm record each year related to the leased asset?

Group of answer choices:

$6,000

$15,000

$0

$9,000

$24,000