Business, 29.05.2021 21:10 jasminechambers642

Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $3,000 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 Payment Cash Payment Effective Interest Decrease in Balance Outstanding Balance
41,236
1 8,800 ?? ?? 32,436
2 8,800 1,946 6,854 25,582
3 8,800 1,535 7,265 18,317
4 8,800 1,099 7,701 10,616
5 8,800 ?? ?? ??
6 2,600 147 2,453 0

Required:
What amount would the lessee record as annual amortization on the asset using the straight-line method, assuming no residual value?

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Refer to the following lease amortization schedule. The five payments are made annually starting wit...

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