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Refer to the following lease amortization schedule. The 10 payments are made annually starting with the inception of the lease. Title does not transfer to

Refer to the following lease amortization schedule. The 10 payments are made annually starting with the inception of the lease. Title does not transfer to the lessee and there is no bargain 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 Balance 83,943 1 12,000 12,000 71,943 2 12,000 6,475 5,525 66,418 3 12,000 5,978 6,022 60,395 4 12,000 5,436 6,564 53,831 5 12,000 4,845 7,155 46,676 6 12,000 4,201 7,799 38,877 7 12,000 3,499 8,501 30,376 8 12,000 2,734 9,266 21,109 9 12,000 ? ? ? 10 12,000 ? ? ? What would be the outstanding balance after payment #10? $12,000. $0. $991. $11,009.

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