And then we do one more year of depreciation expense.
Which will make the lease asset fully depreciated.
The total expense this year is $17,571, that's 2,571 of
interest plus the 15,000 of depreciation, and the ending balance of lease liability
as I mentioned is zero, so this last debit brings the account down to zero.
So to summarize what happened over the last three years for
Caple, is on January 1, 2010, they booked the asset and the liability.
They paid the same amount of cash, 59,127,
they had exactly the same retained earnings, yet 59,127.
But the timing of the expenses changed and
of course we had the lease asset and lease liability which we worked down over time.
Now the lease asset is the net book value,
it's the lease asset minus the accumulated depreciation.
But here you can see they both started at 45,000 and
both ended up at zero at the end of the lease.