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Cady Salons leased equipment from Smith Co. on January 1, 2021, in an operating lease. The present value of the lease payments discounted at 7% was $103,000. Ten annual lease payments of $13,700 are due at each January 1 beginning January 1, 2021. The amortization of the right-of-use asset for the reporting year ending December 31, 2021, would be:

• $7,449.

• $6,251.

• $7,210.

• $13,700.