Abert, Inc. signed a five year lease of equipment on January 1, 2021. The lease was classified as an operating lease and has a 7% implicit interest rate. The lease agreement specifies five payments of $20,000 beginning January 1, 2021, and at each December 31st from 2021-2024. At January 1, 2021, Abert recorded a right-of-use asset and lease payable for $87,744.

When adjusting the books at December 31, 2021, what amount of amortization expense should Abert record for the right-of-use asset?

Multiple Choice

• $17,200

• $13,858

• $20,000

• $15,258