Lease Disclosures—Lessee
The following lease information was obtained by a staff auditor for a client, Kroller Inc., at December 31, 2008. Indicate how this information should be presented in Kroller’s 2 year comparative financial statements. Include any notes to the statements required to meet generally accepted accounting principles. Lease payments are made on December 31 of each year.
|
Leased building; minimum lease payments per year; 10 years remaining life |
$ 45,000 |
|
Executory costs per year |
2,000 |
|
Capitalized lease value, 12% interest |
343,269 |
|
Accumulated amortization of leased building at December 31, 2008 |
114,423 |
|
Amortization expense for 2008 |
22,885 |
|
Obligations under capital leases; balance at December 31, 2008 |
239,770 |
|
Obligations under capital leases; balance at December 31, 2007 |
254,259 |