On January 1, 2021, a lessee company signed a noncancelable finance lease for a piece of equipment. The lease term is 7 years. The lease agreement provides for the transfer of title of the asset to the lessee at the end of the lease term. The equipment has an estimated useful life of 12 years. It has no salvage or residual value. The lessee uses the straight-line method of amortization for all of its fixed assets. The lessee records the right-of-use asset at $155,000 on January 1, 2021. With respect to this finance lease, the lessee should record the amortization expense for 2021 at $_________. (If no amortization expense should be recorded, then enter 0. Round your answer to the nearest dollar, if necessary.)
On January 1, 2021, a lessee company signed a noncancelable finance lease for a piece of equipment. The lease term is 7 years. The lease agreement provides for the transfer of title of the asset to the lessee at the end of the lease term. The equipment has an estimated useful life of 12 years. It has no salvage or residual value. The lessee uses the straight-line method of amortization for all of its fixed assets. The lessee records the right-of-use asset at $155,000 on January 1, 2021. With respect to this finance lease, the lessee should record the amortization expense for 2021 at $_________. (If no amortization expense should be recorded, then enter 0. Round your answer to the nearest dollar, if necessary.)
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