Use the table below to determine the additional year of coversion

Converting operating and capital leasing:

Fiscal Year Capital Lease Operating Lease

2007 $ 34 $500

2008 8 480

2009 400

2010 380

2011 370

Therefore $3000

Create the converting operating leases to capital leases table:

1] you can use the same discount factor as we discussion in class. the beginning lease balance is $3,500 and the total lease payment is $3,500 with 5.8%

Year Payment Discount Factor Present value Interest Lease Obligation Lease balance