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
								69,952
1		10,000				10,000		59,952
2		10,000		5,396		4,604		55,348
3		10,000		4,981		5,019		50,329
4		10,000		4,530		5,470		44,859
5		10,000		4,037		5,963		38,896
6		10,000		3,501		6,499		32,397
7		10,000		2,916		7,084		25,313
8		10,000		2,278		7,722		17,591
9		10,000		?		?		?
10		10,000		?		?		?

What would be the outstanding balance after payment 10?

• $826.

• $9,174.

• $10,000.

• $0.