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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 $2,800 purchase option is
Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $2,800 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 ?? UWN 9,900 9,900 9,900 9,900 9,900 2,800 Effective Decrease in Outstanding Interest Balance Balance 43,020 ?? 33, 120 3,312 6,588 26,532 2,653 7,247 19,285 1,929 7,971 11,314 ?? ?? 255 2,545 0 What would be the amount of interest expense recorded with payment 5? (Round your answer to the nearest whole dollar amount.) 0 $8,769. 0 $1,669. 0 $2,800. 0 $1,131
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