Lessee Co. enters into a 10-year noncancelable operating lease with the lessor on January 1, 2021. The lease liability at the inception of the lease for Lessee is $108,000. The annual rental payment is $12,000, payable at the beginning of each year and the first payment is made on 1/1/21. The following is the partial Amortization Schedule (assumed) prepared by Lessee.

Date Annual Payment Interest on Liability Reduction of Lease Liability Lease Liability

1/1/21 $108,000

1/1/21 $12,000 $ 0 $12,000 96,000

1/1/22 12,000 4,800 7,200 88,800

1/1/23 12,000 4,440 7,560 81,240

In the journal entry made on December 31, 2022, how much should Lessee Co. record for Right-of-Use Asset?