|
Example: Effect of Including $1,000 Prior Balance in the
Gross Capitalized Cost
|
|
This example shows how including a $1,000 prior balance in the gross
capitalized cost affects the other lease amounts. Note that other amounts
change as a result of the change in the gross capitalized cost. |
| Monthly Payment Calculation | $22,300 Cap Cost |
$23,300 Cap Cost |
|---|---|---|
| Gross capitalized cost | $22,300 | $23,300 |
| Capitalized cost reduction | $3,500 | $3,500 |
| Adjusted capitalized cost | $18,800 | $19,800 |
| Residual value | $12,350 | $12,350 |
| Depreciation and any amortized amounts | $6,450 | $7,450 |
| Rent charge | $5,295 | $5,465 |
| Total of base monthly payments | $11,745 | $12,915 |
| Number of lease payments | 48 | 48 |
| Base monthly payment | $244.69 | $269.06 |
| Return |