Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $2,600 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.

  

Lease Payment	Cash Payment	Effective Interest			Decrease in Balance			Outstanding Balance
									41,236
1	8,800								32,436
2	8,800		1,946			6,854			25,582
3	8,800		1,535			7,265			18,317
4	8,800		1,099			7,701			10,616
5	8,800
6	2,600		147			2,453			0

What amount would the lessee record as annual amortization on the asset using the straight-line method, assuming no residual value? (Round your answer to the nearest whole dollar.)

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