CAPITAL AND OPERATING LEASE SCHEDULE
Capital leases are leases that transfer all benefits and risks of ownership to the lessee. If, at its inception, a lease
meets one or more of the following four criteria, the lease should be classified as a capital lease by the lessee:
-- The lease transfers ownership of the property to the lessee by the end of the lease term;
-- The lease contains an option to purchase the leased property at a bargain price;
-- The lease term is equal to or greater than 75 percent of the estimated economic life of the leased property; or
-- The present value of rental and other minimum lease payments, excluding that portion of the payments
representing executory cost, equals or exceeds 90 percent of the fair value of the leased property.
The last two criteria are not applicable when the beginning of the lease term falls within the last 25 percent of the
total estimated economic life of the leased property.
If a lease does not meet at least one of the above criteria it should be classified as an operating lease.
Note : Only Cells marked in yellow require your input
© Copyright 2013 Docstoc Inc. 1
INPUT LEASE DETAILS
Non-cancellable Lease term (years) 15.00
Cost to purchase asset at end of lease 5,000.00
Information about the asset:
Estimated total useful life of the asset (years) 16.0
Age of asset at lease inception (years) -
Value of leased asset at lease inception ($) (What is the asset worth today?) 1,000,000
Present Value of Cost to purchase asset at the end of lease 2,405
Other information:
Interest Rate (annual) 5.00%
Total Lease Value 997,595
Annual Lease Payment ($) 96,111
Note: only cells marked in yellow require your input.
© Copyright 2013 Docstoc Inc. 2
LEASE SCHEDULE
Total Lease 997,595
Year Yearly Lease Payment Interest Principal Repaid Net Pending Lease Obligation
(2) - 49,880 (49,880) 1,047,475
(1) - 52,374 (52,374) 1,099,848
- - 54,992 (54,992) 1,154,841
1 96,111 57,742 38,369 1,116,472
2 96,111 55,824 40,287 1,076,185
3 96,111 53,809 42,301 1,033,884
4 96,111 51,694 44,416 989,468
5 96,111 49,473 46,637 942,830
6 96,111 47,142 48,969 893,861
7 96,111 44,693 51,418 842,444
8 96,111 42,122 53,988 788,455
9 96,111 39,423 56,688 731,768
10 96,111 36,588 59,522 672,245
11 96,111 33,612 62,498 609,747
12 96,111 30,487 65,623 544,124
13 96,111 27,206 68,904 475,220
14 96,111 23,761 72,350 402,870
15 96,111 20,144 75,967 326,903
- - 16,345 (16,345) 343,248
- - 17,162 (17,162) 360,410
- - 18,021 (18,021) 378,431
- - 18,922 (18,922) 397,353
- - 19,868 (19,868) 417,220
- - 20,861 (20,861) 438,081
- - 21,904 (21,904) 459,985
- - 22,999 (22,999) 482,985
- - 24,149 (24,149) 507,134
- - 25,357 (25,357) 532,490
- - 26,625 (26,625) 559,115
- - 27,956 (27,956) 587,071
- - 29,354 (29,354)