Use the table below to determine the additional year of coversion
Converting operating and capital leasing:
Fiscal Year Capital Lease Operating Lease
2007 $ 34 $500
2008 8 480
2009 400
2010 380
2011 370
Therefore $3000
Create the converting operating leases to capital leases table:
1] you can use the same discount factor as we discussion in class. the beginning lease balance is $3,500 and the total lease payment is $3,500 with 5.8%
Year Payment Discount Factor Present value Interest Lease Obligation Lease balance