C. Six years ago, Tarrytown Valuations Corp leased office equipment A $40,000 ROU asset was recognised at that time. Tarrytown depreciated the asset on a straight-line basis over the lease term. Provision of the lease included a requirement to provide a $13,000 residual value guarantee. Tarrytown previously expected to pay out $11,000 under this guarantee. It is now January 1, 2023 and Tarrytown returned the leased equipment to the lessor. As the value of the equipment was only $3,500, Tarrytown paid $9,500 cash to settle the guarantee