Warren Co.recorded a right-of-use asset of $800,000 in a 10-year Type A lease.The interest rate charged by the lessor was 8%.Under the new ASU,the balance in the right-of-use asset after two years will be:
A)$648,000.
B)$640,000.
C)$804,000.
D)$968,000.

Question

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The Answer of Warren Co.recorded a right-of-use asset of $800,000 in a 10-year Type A lease.The interest rate charged by the lessor was 8%.Under the new ASU,the balance in the right-of-use asset after two years will be:
A)$648,000.
B)$640,000.
C)$804,000.
D)$968,000.

Warren CoRecorded a Right-Of-Use Asset of $800,000 in a 10-Year Type