On January $1,2026,$ ABC Company leased equipment from Young

Leasing Company. The lease terms require annual payments of

$$10,000$ for twenty years with the first payment being due on

December $31,2026.$ The interest rate on the lease is $10\%,$ and

ABC Company will amortize the leased asset using the double

declining balance method. At January $1,2026,$ the equipment

had a $25-$year remaining useful life and the lease contract

specifies that the ownership of the equipment will transfer

to ABC Company at the end of the lease term.

Calculate the amount of amortization expense recorded on

the leased asset in $2027.$

You will need to use the time value of money table factors

posted in carmen to answer this question. To access these

factors, click modules and then scroll to week $11.$ Click on

the link labeled present & future value table factors. No

credit will be awarded for this question using a means other

than these posted table factors to answer this question.