Bucs Inc. recorded a right-of-use asset of $130,000 in a 10-year operating lease. Payments of $19,234 are made annually at January 1 of each year beginning January 1, 2021. The interest rate charged by the lessor (known to Bucs) was 10%. The balance in the right-of-use asset at December 31, 2021, will be:

Multiple Choice

• $130,000.

• $117,002.

• $121,843.

• $110,766.