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Refer to the following lease amortization schedule. The 10 payments are made annually starting with the beginning of the lease. Title does not transfer
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 Payment Effective Interest Decrease in balance Outstanding Balance 91,519 1 14,000 14,000 77,519 2 14,000 8,527 5,473 72,046 3 14,000 7,925 6,075 65,971 4 14,000 7,257 6,743 59,228 5 14,000 6,515 7,485 51,743 6 14,000 5,692 8,308 43,435 7 14,000 4,778 9,222 34,213 8 14,000 3,763 10,237 23,976 9 14,000 ? ? ? 10 14,000 ? ? ? What would be the outstanding balance after payment 10?
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