Refer to the Following Lease Amortization Schedule

Multiple Choice

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 is the outstanding balance after payment 5?

A) $1,818.
B) $2,000.
C) $2,182.
D) $3,818.