Business, 03.03.2020 01:19 mktdonaldson

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.
LeasePayment 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
a. What is the outstanding balance after payment 5?

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