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For the following lease, determine the amount the right - of - use ( ROU ) asset will be initially measured at assuming that the

For the following lease, determine the amount the right-of-use (ROU) asset will be initially measured at assuming that the company elects to use the practical expedient available to it. Round your answer to the nearest whole dollar.
Annual payment (due at commencement date) $22,000
Lease term (years)5
Incremental borrowing rate 10%
Implicit rate (not readily determinable by lessee)8%
Non-lease costs included in annual payment 1,000
A.83,397
B.87,567
C.91,737
D.94,867

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