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 Payment	Cash Payment	Effective Interest			Decrease in Balance			Outstanding Balance
									40,380
1	8,400		??			??			31,980
2	8,400		1,599			6,801			25,179
3	8,400		1,259			7,141			18,038
4	8,400		902			7,498			10,540
5	8,400		??			??			??
6	2,800		133			2,667			0

What amount would the lessee record as annual amortization on the asset using the straight-line method, assuming no residual value? (Round your answer to the nearest whole dollar.)

A. 3,997

B. 5,600

C. 5,047

D. 6,097