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  3. 20. blue co. recorded a right-of-use asset of $100

20. Blue Co. recorded a right-of-use asset of $100,000 in a 10-year operating lease. Payments...

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Accounting

20. 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% and was known by Blue. 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.

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