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On December 31, 2020, Reagan Inc. signed a lease with Silver Leasing Co. for some equipment having a seven-year useful life. The lease payments are

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On December 31, 2020, Reagan Inc. signed a lease with Silver Leasing Co. for some equipment having a seven-year useful life. The lease payments are made by Reagan annually, beginning at signing date. Title does not transfer to the lessee, so the equipment will be returned to the lessor on December 31, 2026. There is no purchase option, and Reagan guarantees a residual value to the lessor on termination of the lease Reagan's lease amortization schedule appears below: Payments Interest Dec. 31 2020 2020 2021 2022 2023 2024 2025 2026 $85,700 $85,700 $85,700 $85,700 $85,700 $85,700 $34,300 $31,842 26,994 21,711 15,952 9,674 2,832 Decrease in Outstanding Balance Balance $439,495 $85,700 353,795 53,858 299,937 58,706 241,231 63,989 177, 242 69,748 107,493 76,026 31,468 31,468 e At what amount would Reagan record the right-of-use asset at the beginning of the agreement? At what amount would Reagan record the right-of-use asset at the beginning of the agreement? Multiple Choice O $439,495 $353,795 G $514,200 $548,500

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