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How do calculate the pv of future payments to ensure

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We leased an equipment for the actual cost 0f $2400 for 2 years . lessor has asked us to pay a Monthly payment of 227.8 . The total amount on the invoice is 231.8 ( $4 tax added)

Question 1: How do calculate the Pv of future payments to ensure if it is capital lease.( as this is the only criteria i am unsure about ) and if it is a capital lease what will be the accounting treatments in the balance sheet and income statement regarding principle amount ,interest and tax

  • Usefull life =5 years
  • No buy option at the end of period

Reference no: EM132473913

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