Question 9 (-110 On January 1, Year 1, Lessee entered into a 4-year lease that does not transfer ownership or contain a purchase option. The economic life of the leased asset, which has an alternative use, is 6 years. Also, the present value of the lease payments is 75% of the fair value of the leased asset. If no initial direct costs are incurred, what is the lessee's appropriate accounting? (1) Amortize the right-of-use asset on a straight line basis over a 6-year period. (2) Amortize the right-of-use asset on a straight-line basis over the lease term of 4 years. (3) Each period interest expense recognized is equal to the amortization of the right-of-use asset. Recognize lease expense for the same amount each period of the lease term