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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

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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 fiveyear lease. The asset has an expected economic life of eight years. What would be the amount of interest expense recorded with payment 5 ? Muitiple Choice $7,107 $2,000 $893 $1,107 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 fiveyear lease. The asset has an expected economic life of eight years. What would be the amount of interest expense recorded with payment 5 ? Muitiple Choice $7,107 $2,000 $893 $1,107

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