This example shows the entries that you make in Vision for a capital lease that will be amortized.
You enter the capital lease as an asset item in the Equipment Info Center. Amortization is calculated for it when you run depreciation processing in the Asset Management application.
Scenario
- Your firm enters into a 10-year lease for machinery.
- The machinery has an estimated life of 10 years.
- The machinery's fair value at the beginning of the lease is $400,000.
- The lease payment is $6,000 per month.
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