Suppose your corporation wants to lease space in a building. Annual lease payments are $150,000/year, payment due at the beginning of each year. It is an 8 year lease. Cost of debt is 7.0%.. Tax rate is 40%. Straight line depreciation, no salvage value. This lease must be capitalized.

show in excel

Calculate total expenses to be shown on the Income Statement for each of the first 3 years.