EOC FSA pg 112

#8, the way I’m interpreting this is since we are capitalizing the interest, it’s now part of the “capital” asset, so fixed assets go up, OK i get that. But if you look at the answer to #8, it is saying to use interest PAYMENTS rather than interest EXPENSE. I don’t know the difference between these. Then it goes on to say how you should use the ENTIRE amount of interest expenditure, which I think it’s trying to say use interest PAYMENT which represents the entire amount (both capitalized and expense portions). #9, I get it, but if you look at the answer, I have seen this before but never fully understood why exactly the lease expense of an operating lease is LESS than the sum of the interest & depreciation expense (which exists in a capital lease?), and then that reverses later on? Thanks, Andrew