Evaluate the balance in the right-of-use asset

Reference no: EM1374840

Warren Co. recorded a right-of-use asset of $900,000 in a 8-year lease under which no profit was recorded at commencement by lessor. The interest rate charged the lessee was 10 percent. Under the new ASU, the balance in the right-of-use asset after 2 years will be:

$1,012,500.
$1,139,062.
$689,062.
$675,000.

Reference no: EM1374840

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