Blue Co. recorded a right-of-use asset of $100,000 in a 10-year operating lease. Payments of $16,275 are made annually at the end of each year. The interest rate charged by the lessor was 10%. 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.

Question

Quizplus · Accepted Answer

11ea937b_35dd_cc86_a419_a5d5a4d8491f_TB2599_00 Balance: $100,000 ? 6,275 ? 6,902 = $86,823

Blue Co Recorded a Right-Of-Use Asset of $100,000 in a 10-Year