Hi, In the following example a company currently has a yearly lease expense of 213, that is expected to last for 8 years. The expense is being capitalized by using 6.5%. This gets us a PV of the lease expenses of: 1297. My understanding is that 1297 will be added to the company assets. Under which post? Also, what would the other effects be on the Balance Sheet, Income Statement and Cash Flow Statement?
Thanks for the help!