Company A started at the beginning of 2019.

They entered into a lease with Jan 1st as both inception and commenment date

The Lease term is as below

- 5 yr non-cancellable

- 5% interest rate

- equal payment of $22916.51 at the end of each year

- $1,000 bargining purchase option at the end of lease term

Useful life of this asset is 6 years with 0 residual value

Tax rate 25%, 30% and 35% each of the year.