8) Red Company recorded a right-of-use asset of $100,000 in a 10-year finance lease. Payments of $16,275 are made annually at the end of each year. The interest rate charged by the lessor and known by Red was 10%. The balance in the lease payable after two years will be:

A) $80,000.

B) $86,823.

C) $116,309.

D) $121,000.