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Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $2,300 purchase option is

Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $2,300 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 Payment Cash Payment Effective Interest Decrease in Balance Outstanding Balance
32,350
1 7,000 ?? ?? 25,350
2 7,000 1,775 5,225 20,125
3 7,000 1,409 5,591 14,534
4 7,000 1,017 5,983 8,551
5 7,000 ?? ?? ??
6 2,300 150 2,150 0

What would be the amount of interest expense recorded with payment 5? (Round your answer to the nearest whole dollar amount.)

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