On January $1,2023,$ Wildhorse Ltd$.$ signs an $8-$year non$-$cancellable lease agreement to lease a storage building from Hyde Inc. Hyde is

in the business of leasing$/$selling property. Collectibility of the lease payments is reasonably assured and no additional costs are to be

incurred by the lessor $($other than executory costs$).$ Both the lessor and the lessee are private corporations adhering to ASPE. The

following information is available regarding this lease agreement:

The agreement requires equal payments at the end of each year.

At January $1,2023,$ the fair value of the building is $$1355000$ and Hyde's book value is $$1137000.$

The building has an estimated economic life of $8$ years, with no residual value. Wildhorse uses straight$-$line depreciation for all

its depreciable assets.

At the termination of the lease, title to the building will transfer to the lessee.

Wildhorse's incremental borrowing rate is $11\%.$ Hyde Inc. set the annual rental to ensure a $10\%$ rate of return. The lessor's

implicit rate is known to Wildhorse.

The yearly lease payment includes $$4500$ executory costs related to taxes on the property.

Rounded to the nearest dollar, how much depreciation expense would Wildhorse record on this asset for calendar $2023?$

$$142125$

$$169375$

$$0$

$$108000$