Wonder signed a 3 year lease for a warehouse, owned by Option, and moved in 1/1/Y1. The lease qualifies as an operating lease for both parties. The lease requires Wonder to pay Option $24,000 a year on the following dates: 1/1/Y1, 12/31/Y1, and 12/31/Y2. The appropriate rate of interest is 10% and the present value of the lease payments is $65,653. On 12/31/Y1 Wonder will make a journal entry related to this lease that includes:

A. A debit to Amortization Expense for $19,835

B. A credit to Lease Payable for $4,165

C. A credit to Interest Expense for $4,165

D. A debit to Right-of-Use Asset for $19,835