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. Outstanding Balance Payment Cash Payment Effective Interest Decrease in balance. 108,703 1 15,000 15,000 93,703 2 15,000 7,496 7,504 86,199 3 15,000 6,896 8,104 78,095 4 15,000 6,248 8,752 69,343 5 15,000 5,547 9,453 59,890 6 15,000 4,791 10,209 49,681 7 15,000 3,974 11,026 38,655 8 15,000 3,092 11,908 26,747 9 15,000 P ? ? 10 15,000 ? ? 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.) Multiple Choice $10,870. $15,000. $10,934. $9,370