Kerr should record amortization on its right-of-use asset of Select one: a. $20,000 b. $12,600 c. $8,400 d. $0

On January 1 . 2020. Kerr Company signed a 10-year noncancelable lease for new equipment, requiring $20,000 annual payments at the beginning of each year. The equipment has a useful life of 15 years, with no salvage value. Title passes to Kerr at the lease expiration date. At the lease commencement, Kerr records a right-of-use asset and a lease liability Of $126,000, based on an appropriate rate Of interest. For 2020, Kerr should record amortization on its right-of-use asset of Select one: a. $20,000 O b. $12,600 c. $8,400 d. SO