Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $2,500 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 123 456 2 3 4 5 6 Cash Payment $ 9,600 9,600 9,600 9,600 9,600 $ 2,500 O Multiple Choice Effective Decrease in Outstanding Interest Balance Balance $43,900 34,300 27,101 19,398 11,156 What amount would the lessee record as annual amortization on the asset using the straight-line method, assuming no residual value? Note: Round your answer to the nearest whole dollar. $8,780 ?? ?? $ 2,401 $ 7,199 1,897 7,703 1,358 8,242 ?? ?? $164 $ 2,336 $ 0

Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A$2,500 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, assuming no residual value? Note: Round your answer to the nearest whole dollar. Multiple Choice $8,780