Blue CoRecorded a Right-Of-Use Asset of $100,000 in a 10-Year Type

Multiple Choice

Blue Co.recorded a right-of-use asset of $100,000 in a 10-year Type B lease.Payments of $16,275 are made annually at the end of each year.The interest rate charged by the lessor was 10%.Under the new ASU,the balance in the right-of-use asset after two years will be:

A) $ 80,000.
B) $ 86,823.
C) $100,000.
D) $121,000.