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Lease conversion from operating to corporation: A company has borrowing cost of about 4% in 2014 and lease balance $4,300. Year Payment Discount Factor Present
Lease conversion from operating to corporation:
A company has borrowing cost of about 4% in 2014 and lease balance $4,300.
| Year | Payment | Discount Factor | Present Value (4%) | Interest | Lease Obligation | Lease Balance |
| 2013 |
|
|
|
|
| $4,300 |
| 2014 |
| 0.9615 |
|
|
|
|
| 2015 |
| 0.9246 |
|
|
|
|
| 2016 |
| 0.8890 |
|
|
|
|
| 2017 |
| 0.8548 |
|
|
|
|
| 2018 |
| 0.8219 |
|
|
|
|
| 2019 |
| 0.7903 |
|
|
|
|
| 2020 |
| 0.7599 |
|
|
|
|
| 2021 |
| 0.7307 |
|
|
|
|
| 2022 |
| 0.7026 |
|
|
|
|
| 2023 |
| 0.6756 |
|
|
|
|
| 2024 |
| 0.6496 |
|
|
|
|
| 2025 |
| 0.9246 |
|
|
|
|
Please calculate the payment, discount factor, PV, interest, lease obligation and lease balance. (show work please)
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