MC Qu. 56 Refer to the following lease amortization s... Refer to the following lease amortization schedule. The five payments are made annually starting with the inception of the lease. A $2,000 bargain purchase option is exercisable at the end of the five-year lease. The asset has an expected economic life of eight years. Lease Payment Cash Payment Effective Interest Decrease in Balance Balance 34,600 1 8,000 ?? ?? 26,600 2 8,000 2,660 5,340 21,260 3 8,000 2,126 5,874 15,386 4 8,000 1,539 6,461 8,925 5 8,000 ?? ?? ?? 6 2,000 182 1,818 0 What would the lessee record as annual depreciation on the asset using the straight-line method, assuming no residual value? $3,325. $6,920. $4,325. $5,320.