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

PaymentCash

PaymentEffective

InterestDecrease in

BalanceOutstanding

Balance32,35017,000????25,35027,0001,7755,22520,12537,0001,4095,59114,53447,0001,0175,9838,55157,000??????62,3001502,1500

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