Tition 14 Information Continued from the Previous Question On January 1, 2022. XYZ Lesseeleased equipment from Valley. Leasing Lesser, signing an Operation. Les with the following term Both the cost and the fair value of the asset for Valley Lessor is $230,000 Lease specifies 3 annual payments of $56,000 beginning January 1, 2022, and on each January 1 thereafter through 2024 The year form ends on December 11.2004 The asset's expected residual value at the end of the lease term (3 years) is $14,065, unguaranteed by the Less The expected useful life of the equipment is 5 years, and there is no expected residual value at the end of its useful life There is no purchase option, and the equipment events back to the lessor at the end of the 3-year period The implicit rate on the lease is 6%, and XYZ Lessee is aware of that rate. Assume Straight Line Depreciation is used on the Right of Use Asset PVAD Factor, 3-6% 2.83399 PV of $1 Factor 3.696 83982 December 31, 2022 end of the first year, what should be the balance of XYZ Lessee's Right-of-Use Asset on the Balance Sheet after adjusting entries are made? At December 31, 2022 end of the first year, what should be the balance of XYZ Lessee's Biohof-seasest on the Balance Sheetattet.adiustion entries werende? a $102,670 b. 5112,000 5105.780 O d. $ 108,830 De 550.000