Karla Salons leased equipment from SmithCo on January 1, 2021, in an operating lease. The present value of the lease payments discounted at 10% was $160,000. Ten annual lease payments of $24,000 are due each January 1, beginning January 1, 2021. The amortization of the right-of-use asset in 2021 would be:

Select one:

a. $ 16,000

b. $ 10,400

c. $ 24,000

d. $ 13,600