ID Clair Co

Multiple Choice

I.D. Clair Co. recorded a right-of-use asset of $100,000 in a 10-year operating lease. Payments of $14,795 are made annually at January 1 of each year beginning January 1, 2018. The interest rate charged by the lessor was 10%. The balance in the right-of-use asset at December 31, 2018, will be:

A) $ 85,205.
B) $ 91,478.
C) $ 93,726.
D) $100,000.