On January 1, Year 1, Rexton Company leases equipment from League Leasing Company for annual lease rental of $10,000. The lease term is 5 years and the lessor's interest rate implicit in the lease is 5%. The useful life of the equipment is 5 years and its estimated residual value equals to its removed cost. The present value of an annual lease rental $1 (at 5%) is 4.330. The fair value of leased equipment equals the present value of rentals (assume the lease is capitalized). Compute the recorded amortization of leased property on Income Statement Year Ended December 31, Year 1.