TB MC Qu. 15-89 (Algo) Cady Salons leased equipment from....

Cady Salons leased equipment from Smith Co. on January 1, 2021, in an operating lease. The present value of the lease payments discounted at 10% was $116,900. Ten annual lease payments of $17,300 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:

Multiple Choice

• $7,340.

• $9,960.

• $11,690.

• $17,300.