In connection with an equipment lease initiated on January 1, 2020, Lessee records a lease liability of $500,000. The term of the lease is 5 years. The lease agreement states that Lessee assumes ownership of equipment, which has an economic life of 10 years, at the end of the lease term. Assuming Lessee uses straight-line amortization, what amount of amortization expense should Lessee record for 2020.

Group of answer choices

$50,000

$0

$100,000

$500,000