Finding the balance in right-of-use asset

Reference no: EM1310231

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 the lessor. The interest rate charged the lessee was 10%. 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: EM1310231

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