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Refer to the following lease amortization schedule.The five payments are made annually starting with the inception of the lease.A $2,000 bargain purchase option is exercisable at the end of the five-year lease.The asset has an expected economic life of eight years.
Use the following to answer questions Refer to the following lease amortization schedule.The five payments are made annually starting with the inception of the lease.A $2,000 bargain purchase option is exercisable at the end of the five-year lease.The asset has an expected economic life of eight years. -What would the lessee record as annual depreciation on the asset using the straight-line method,assuming no residual value? A) $3,325. B) $6,920. C) $4,325. D) $5,320.
-What would the lessee record as annual depreciation on the asset using the straight-line method,assuming no residual value?


A) $3,325.
B) $6,920.
C) $4,325.
D) $5,320.

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