$14.$ We see you have another new lease this year for additional shop equipment. You booked this lease as a long$-$term Itability, so we need the same information for this lease as we asked for on the lease for the building. We need the lease term, the interest rate, the fair value of the assets leased, and the useful life of the assets.

Yes, Kay negotiated that lease. We are paying an annual lease payment of $$3,765$ for three years. If we had purchased that equipment, it would have cost us weil over $$20,000$ and we certainly would have been able to use it for seven years or more. However, we did not want to purchase items that we may not need over the long term, depending on the direction the business goes over the next few years. They did not give me an interest rate, but I do know that the total principal amount due on the lease over the three years is $$10,750.$ We will be returing the assets to the lessor at the end of the lease. Is that what you need to know? Need help with how this