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28 July, 15:43

Lasch Co. recorded a right-of-use asset of ... I. Lasch Co. recorded a right-of-use asset of $200,000 in a 10-year operating lease. Payments of $32,550 are made annually at the end of each year. The interest rate charged by the lessor was 10%. The balance in the right-of-use asset after the first year will be:A) $180,000. B) $187,450C) $188,450. D) $200,000.

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  1. 28 July, 18:53
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    187, 450.00

    Explanation:

    Cost of the asset : $ 200,000.00

    Interest rate at 10 %

    Payment per year = 32,550.00

    First year total amount due = 10% plus asset cost

    = ($200,000x 10/100) = 200,000

    =$20,000+200 000

    =$220,000.00

    After deduction = $220,000 - 32, 550

    =$ 187, 450.00
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