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How woud I calculate this? Not looking for answer. Looking for specifics. Suppose that on the first day of the year, we lease an asset

How woud I calculate this? Not looking for answer. Looking for specifics.

Suppose that on the first day of the year, we lease an asset for a five year period. Each payment is $20,000, and it is made at the end of the year. The firms incremental borrowing rate is 12% per year.

If the lease is accounted for as CAPITAL lease, what is the impact on pre-tax income in the first year of the lease.

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