Red Co. recorded a right-of-use asset of $125,000 in a 10-year finance lease. Payments of $20,343 are made annually at the end of each year. The interest rate charged by the lessor and known by Red was 10%. The balance in the lease payable after two years will be: (Round your final answer to the nearest whole dollar.)

Multiple Choice

• $151,250.

• $145,377.

• $100,000.

• $108,530.