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. Cash Payment Effective Interest Decrease in balance Payment 1 2 3 4 HM00 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 5 Outstanding Balance 101,385 86,385 80,024 73,026 65,329 56,862 47,548 37,303 26,033 ? ? 15,000 6,361 6,998 7,697 8,467 9,314 10,245 11,270 ? ? 8,639 8,002 7,303 6,533 5,686 4,755 3,730 ? ? 6 - 7 8 9 10 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 $10,139