On January $2,20$X$1,$ Cole Company signed an eight$-$year noncancelable lease for a new machine, requiring $$15,000$ annual payments at the beginning of each year. The machine has a useful life of $12$ years, with no salvage value. Title passes to Cole at the lease expiration date. Cole use straight$-$line depreciation for all of its plant assets. Aggregate lease payments have a present value on January $2,20$X$1,$ of $$108,000,$ based on an appropriate rate of interest. For $20$X$1,$ Cole should record amortization expense for the leased machine at

Multiple Choice

$$0$

$$9,000$

$$13,500$

$$15,000$