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 Refer to the following lease amortization schedule. The 10 payments expected economic life of 12 years. The lease is noncancelable. Cash Payment Effective Interest Decrease in balance Payment 1 2 3 4 10,000 10,000 10,000 10,000 10,000 10,000 10,000 1 10,000 10,000 10,000 5 Outstanding Balance 67,590 57,590 53,349 48,684 43,552 37,907 31,698 24,868 17,355 ? ? 5,759 5,335 4,868 4,355 3,791 3,170 2,487 ? ? 10,000 4,241 4,665 5,132 5,645 6, 209 6,830 7,513 ? ? 6 7 8 9 10 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 $6,823 O $6,759 O $10.000. O O $5,759