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 67,590 1 10,000 10,000 57,590 2 10,000 5759 4241 53,349 3 10,000 5335 4665 48,684 4 10,000 4868 5132 43,553 5 10,000 4355 5645 37,908 6 10,000 3791 6209 31,699 7 10,000 3170 6830 24,869 8 10,000 2487 7513 17,355 9 10,000 ? ? ? 10 10,000 ? ? ? 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 dollar.)

Payment

Cash Payment

Effective Interest

Decrease in balance

Outstanding Balance 67590

1		10,000				10,000		57,590
2		10,000		5759		4241		53,349
3		10,000		5335		4665		48,684
4		10,000		4868		5132		43,553
5		10,000		4355		5645		37,908
6		10,000		3791		6209		31,699
7		10,000		3170		6830		24,869
8		10,000		2487		7513		17,355
9		10,000		?		?		?
10		10,000		?		?		?

$10,000.

$6823.

$6759.

$5759.