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

What would be the outstanding balance after payment 10?

Multiple Choice

a. $0.

b. $1,090.

c.$9,910.

d. $11,000.

Cash Payment Effective Interest Payment Decrease in balance m 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 in 6,700 6,227 5,702 5,119 4,472 3,754 2,957 Outstanding Balance 71,908 60,908 56,607 51,834 46,536 40,655 34,127 26,881 18,838 11,000 4,300 4,773 5,298 5,881 6,528 7,246 8,043 000 n. n