Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $1,700 purchase option is reasonably certain to be exercised at the end of the five-year lease. The asset has an expected economic life of eight years. Lease Cash Payment Payment Effective Interest 1 2 8,600 8,600 8,600 8,600 8,600 1,700 3 Decrease in Outstanding Balance Balance 39,670 ?? 31,070 6,736 24,334 7,140 17,195 7,568 9,626 ?? ?? 1,604 0 ?? 1,864 1,460 1,032 ?? 96 4 6 What amount would the lessee record as annual amortization on the asset using the straight-line method, assuming no residual value? (Round your answer to the nearest whole dollar.) Multiple Choice $3,884. $5,588. $4,959. $6,034