Recorded right-of-use asset-interest rate charged by lessor

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Reference no: EM131290168

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.

Reference no: EM131290168

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