1. YG Company leased equipment from a lessor, on January 2, 2020. The

lease is for a six-year period (the useful life of the asset). The

unguaranteed residual value is $10,000. Lessor's implicit rate in the lease

is 8% and is known by YG. The present value of an annuity due of 1 for

six years at 8% is 4.99271. The present value of 1 for six years at 8% is

0.63017. Annual lease payments is $46,808 at the beginning of each year

for six years. YG uses the straight-line method of depreciation for all of

its fixed assets. What amount of balance of Right-of-Use Asset would YG

report at Statement of Financial Position at December 31, 2020?

O a. $186,099.05

O b. $240,000

O C. $200,000

d. $194,748.58

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