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.

What amount would the lessee record as annual amortization on the asset using the straight-line method, assuming no residual value? (Chapter 15)

Lease Payment	Cash Payment	Effective Interest			Decrease in Balance			Outstanding Balance
									34,600
1	8,000		??			??			26,600
2	8,000		2,660			5,340			21,260
3	8,000		2,126			5,874			15,386
4	8,000		1,539			6,461			8,925
5	8,000		??			??			??
6	2,000		182			1,818			0