Bucs Inc. recorded a right-of-use asset of $128,000 in a 10-year operating lease. Payments of $17,662 are made annually at January 1 of each year beginning January 1, 2021. The interest rate charged by the lessor (known to Bucs) was 8%. The balance in the right-of-use asset at December 31, 2021, will be:

Multiple Choice

$128,000.

$117,757.

$110,338.

$119,165.