At the beginning of the year, Mustang Corp. entered into a finance lease requiring 5 annual payments of $15,000 each beginning on December 31. The initial present value of the lease payments discounted at 8% was $59,900. The leased asset has an estimated useful life of 5 years and Mustang uses the straight-line amortization method. At the end of the year, Mustangs lease expense is closest to:

a. $4792

b. $15000

c. $16772

d. $11980