Find the right-of-use asset would be recorded at

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Question 1: On October 1, 2021, Sonoma Company leased equipment from Napa Inc. in lease payable in five equal annual payments of $460,000, beginning Oct 1, 2022. Similar transactions have carried an 9% interest rate. The right-of-use asset would be recorded at: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Multiple Choice

Option 1: $0.

Option 2: $1,789,239.

Option 3: $1,950,271.

Option 4: $2,300,000.

Reference no: EM132606198

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