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 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 paymentis 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 fease expiration date. At the lease commencement, Kerr records a right-of-use asset and a lease liabifity 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 b. $12,600 c. $8,400 d. 50