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
								101,456
1		14,000				14,000		87,456
2		14,000		6,996		7,004		80,452
3		14,000		6,436		7,564		72,888
4		14,000		5,831		8,169		64,719
5		14,000		5,178		8,822		55,897
6		14,000		4,472		9,528		46,369
7		14,000		3,710		10,290		36,079
8		14,000		2,886		11,114		24,965
9		14,000		?		?		?
10		14,000		?		?		?

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 whole dollar.)

• $8,746.

• $10,146.

• $14,000.

• $10,210.