Adonis Co. recorded a right-of-use asset of $400,000 in a ten-year lease under which no profit was recorded at commencement by the lessor. The interest rate charged the lessee was 10%. The balance in the right-of-use asset after two years will be:
A) $324,000.
B) $320,000.
C) $440,000.
D) $484,000.
