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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 $2,400 purchase option is
Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $2,400 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. What amount would the lessee record as annual amortization on the asset using the straight-line method, assume no residual value?
A.3863
B.5550
C.4913
D.7860
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