Hepp 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 Cash Effective Payment Payment Interest Decrease in Outstanding Balance Balance 39,300 1 5,400 22. ?? 30,900 2 8,400 1,854 6,546 24,354 3 5,400 1,461 6,939 17,416 4 8,400 1,045 7,355 10,061 5 8,400 22 ?? 6 2,400 136 2,264 What is the effective annual interest rate? (Round your answer to the nearest whole percent.) Mutiple Choice Help Save & Ext Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease A $2300 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 Cash Payment Payment Effective Interest Decrease in Balance Outstanding Balance 40,370 1 9,200 ?? 31,170 2 9,200 2,805 6,395 24,776 3 9,200 2,230 6,970 17,005 4 9,200 1,602 7,598 10,200 5 9,200 6 2,100) 22 173 22 1,927 What amount would the lessee record as annual amortization on the asset using the straight-line method, assuming no residual value? (Round your answer to the nearest whole dollar) Multiple Choice O $3.896 16.00