TB MC Qu. 15-93 (Algo) I. Lasch Co. recorded a right-of-use asset of...

I. Lasch Co. recorded a right-of-use asset of $238,000 in a 10-year operating lease. Payments of $42,122 are made annually at the end of each year. The interest rate charged by the lessor was 12%. The balance in the right-of-use asset after the first year will be:

Multiple Choice

• $209,440.

• $224,438

• $161,364.

• $238,000.