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29 pixels P11.3 Capitalizing Operating Leases-Part 1: Use the information presented in the following financial disclosures to measure the present value of the outstanding operating

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29 pixels P11.3 Capitalizing Operating Leases-Part 1: Use the information presented in the following financial disclosures to measure the present value of the outstanding operating lease obligations as of the end of Years 0 and 1. assuming annual payments and a 7% discount rate. Also measure the present value of the additions to the lease obligations (new leases), the implicit interest on la capitalized lease obligations, and the lease asset amortiza- tioncassuming a 10-year life for Year 1. Year 1 Financial Disclosure Finance Operating Year Leases Leases Year 0 Financial Disclosure Finance Operating Year Leases Leases Year 1... $ 1.200 $ 3,600 Year 2 1,160 3,480 Year 3 1.110 3.330 Year 4 1,030 3,090 Year 5... 1.000 3,000 After Year 5. 8.000 27.000 Total $13.500 $43.500 Total interest 5.979 Precent value $ 7.521 Year 2 Your 3 Yoar 4 Year 5 Year 6 After Year 6 Total Total interest Present value $ 1.400 1400 1.300 1200 1.200 9.600 $16.100 7.154 $ 8.946 $ 4,000 3.900 3,700 3,400 3,300 29,700 $48.000 29 pixels P11.3 Capitalizing Operating Leases-Part 1: Use the information presented in the following financial disclosures to measure the present value of the outstanding operating lease obligations as of the end of Years 0 and 1. assuming annual payments and a 7% discount rate. Also measure the present value of the additions to the lease obligations (new leases), the implicit interest on la capitalized lease obligations, and the lease asset amortiza- tioncassuming a 10-year life for Year 1. Year 1 Financial Disclosure Finance Operating Year Leases Leases Year 0 Financial Disclosure Finance Operating Year Leases Leases Year 1... $ 1.200 $ 3,600 Year 2 1,160 3,480 Year 3 1.110 3.330 Year 4 1,030 3,090 Year 5... 1.000 3,000 After Year 5. 8.000 27.000 Total $13.500 $43.500 Total interest 5.979 Precent value $ 7.521 Year 2 Your 3 Yoar 4 Year 5 Year 6 After Year 6 Total Total interest Present value $ 1.400 1400 1.300 1200 1.200 9.600 $16.100 7.154 $ 8.946 $ 4,000 3.900 3,700 3,400 3,300 29,700 $48.000

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