Can somebody help me with this exercise? I am confused but my answer is A

New Mexico Corporation leased equipment under an agreement that qualifies as a finance lease.The present value of the minimum lease payments is $120,000.The lease term is five years.After the expiration of the five year lease, the lease contains a bargain purchase option.The expected economic life of the asset is eight years.

Using the straight-line method, what would New Mexico record as annual amortization expense on this leased equipment?

A) $24,000

B) $15,000

C) $12,000

D) $30,000