following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $1,700 purchase option is reasonably certain to be exercised at the end of the five-year lease. The asset has an expected economic life of eight years. Lease Payment Cash Payment Effective Decrease Outstanding Interest in Balance Balance $ 39,670 1 $ 8,600 27 31,070 2 8,600 $ 1,864 $ 6,736 24,334 3 8,600 1,460 7,140 17,195 4 8,600 1,032 7,568 9,626 5 8,600 ?? ?? 22 6 $ 1,700 $ 96 $ 1,604 $ 0 What would be the amount of interest expense recorded with payment 5? Note: Round your answer to the nearest whole dollar amount. Multiple Choice $1122 $8,022 Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $2.400 purchase option is reasonably certain to be exercised at the end of the five-year lease. The asset has an expected economic life of eight years. Lease Payment Cash Payment Effective Decrease Outstanding Interest in Balance Balance $39,580 1 $ 8,800 77 22 30,780 2 8,800. $ 2,462 $ 6,338 24,443 3 8,800 1,955 6,845 17,598 4 8,800 1,408 7,392 10,206 5 8,800 22 22 22 $ 2,400 $178 $ 2,222 $ 0 What is the total interest paid over the term of the lease? Multiple Choice $3.712 $6.820 123456 $ 8,600 ?? ?? 31,070 8,600 $ 1,864 $ 6,736 24,334 3 8,600 1,460 7,140 17,195 8,600 1,032 7,568 9,626 8,600 ?? ?? 2 ?? 6 $ 1,700 $ 96 $ 1,604 $ 0 What would be the amount of interest expense recorded with payment 5? Note: Round your answer to the nearest whole dollar amount. Multiple Choice O $1,122 $8,022 $1,700 $578 Payment Payment Interest in Balance Balance $ 39,580 $ 8,800 ?? ?? 30,780 2 8,800 $ 2,462 $ 6,338 24,443 3 8,800 1,955 6,845 17,598 4 8,800 1,408 7,392 10,206 5 8,800 ?? ?? ?? 6 $2,400 $ 178 $2,222 $ 0 What is the total interest paid over the term of the lease? Multiple Choice $3,712 $6,820 $46,400 $4,948