Blue CoRecorded a Right-Of-Use Asset of $100,000 in a 10-Year Type

question 83

Multiple Choice

Blue Co.recorded a right-of-use asset of $100,000 in a 10-year Type B lease.Payments of $16,275 are made annually at the end of each year.The interest rate charged by the lessor was 10%.Under the new ASU,the balance in the right-of-use asset after two years will be:

• A)$ 80,000.
• B)$ 86,823.
• C)$100,000.
• D)$121,000.

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Definitions:

Five Stages

Typically refers to a framework that divides a process into distinct phases, commonly used in models of grief and psychological development.

Critical Period

A critical period is a specific time in development when the presence or absence of certain experiences has a long-lasting influence on the physical or emotional development of an individual.

Teratogens

Agents, such as chemicals or viruses, that can cause developmental malformations in embryos or fetuses.

Sensorimotor Stage

Piaget’s first stage of cognitive development, in which the infant uses its senses and motor abilities to interact with objects in the environment.