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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 $2,000 purchase option is

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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 $2,000 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 Effective Decrease in Outstanding Payment Payment Interest Balance Balance 34, 600 SWNP 8,000 ?? 26, 600 8,000 2, 660 5, 340 21, 260 8,000 2, 126 5 , 874 15, 386 8,000 1, 539 6, 461 8,925 8,000 ?? ?? ?? 2,000 182 1, 818 0 What would be the amount of Interest expense recorded with payment 5? Multiple Choice O $2.000. O $893. O $7.107. O $1.107

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