39 On January 1, 20X6, Liberty Corp. (LC) entered into a lease agreement contract that entitled it to use equipment. Details of the contract follow: Lease payment, including the non-lease component Non-lease component (maintenance agreement) included in lease payment Implicit rate in the lease (readily determinable by lessee) Incremental borrowing rate Lease term Economic life of equipment Guaranteed residual value Expected pay-out on residual value guarantee Option to purchase First annual payment due $60,000 $4,000 5% 6% 5 years 6 years $10,000 $8,000 No Jan. 1, 20X6 LC elects to adopt the practical expedient available to report the lease and non-lease components in the contract as a single lease component. The company uses the straight-line method to depreciate its right-of-use assets. What is the amount that NC will record for depreciation of this ROU asset for its year-ended December 31, 20X6? Oa $56,118 Ob. $54,777 Oc$52,168 Od. $55,805