Refer to the following lease amortization schedule. The 10 payments are 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 expected economic life of 12 years. The lease is noncancelable.

Payment		Cash Payment		Effective Interest		Decrease in balance		Outstanding Balance
								90,938
1		13,000				13,000		77,938
2		13,000		7,014		5,986		71,952
3		13,000		6,476		6,524		65,428
4		13,000		5,889		7,111		58,317
5		13,000		5,249		7,751		50,566
6		13,000		4,551		8,449		42,117
7		13,000		3,791		9,209		32,908
8		13,000		2,962		10,038		22,870
9		13,000		?		?		?
10		13,000		?		?		?

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

$13,000.

$9,094.

$9,158.

$7,794.