Cady Salons leased equipment from Smith Co. on January 1, 2021, in an operating lease. The present value of the lease payments discounted at 8% was $92,800. Ten annual lease payments of $12,800 are due at each January 1 beginning January 1, 2021. The amortization of the right-of-use asset for the reporting year ending December 31, 2021, would be: Multiple Choice $6,400 O $6,400. $7,424. O $12,800