Durney Co Recorded a Right-Of-Use Asset of $800,000 in a Ten-Year

Multiple Choice

Durney Co. recorded a right-of-use asset of $800,000 in a ten-year finance lease. The interest rate charged by the lessor was 10%. The balance in the right-of-use asset after two years will be:

A) $648,000
B) $640,000
C) $880,000
D) $968,000