22) Medical Equipment leasing Company leased equipment to Hanover Healthcare System on January 1, 2025, for a four-year period. Equal annual payments under the lease are $250,000 and are due on January 1 of each year. The first payment was made on January 1, 2025. The implicit rate of interest contemplated by Medical Equipment Leasing and known to Hanover Healthcare is 8%. Hanover's incremental borrowing rate is 10%. The cost of the equipment on Medical Equipment Leasing accounting records was $775,000. Assuming that the lease is appropriately recorded as an operating lease, calculate the reduction to the carrying value of the Right-of-Use Asset account for Hanover Healthcare Systems at December 31, 2025. 8%, 4 periods 10%, 4 periods A) $193,750 B) $129,167 C) $250,000 PV Annuity Due PV Ordinary Annuity PV Single Sum 3.57710 3.31213 3.48685 3.16986 .73503 .68301 D) $198,458 CORRECT ANSWER Please show work**