Warren CoRecorded a Right-Of-Use Asset of $800,000 in a 10-Year Type

Multiple Choice

Warren Co.recorded a right-of-use asset of $800,000 in a 10-year Type A lease.The interest rate charged by the lessor was 8%.Under the new ASU,the balance in the right-of-use asset after two years will be:

A) $648,000.
B) $640,000.
C) $804,000.
D) $968,000.