Louie the lessee leased an asset for a three‐year lease term. Louie appropriately accounted for the lease as a finance lease and recorded a right‐of‐use asset for $45,000. The asset has a useful life of four years. How much amortization expense should Louie record each year?

Group of answer choices

• $15,000
• $11,250
• $0, for a finance lease, the lessor will record amortization expense for the right‐of‐use asset
• $0, Louie will record depreciation expense, not amortization expense.