Expense

Question 1

The compensation Exp in the current year on vested rights,future, for services provided in the current :

Answer 1

If the total vested rights will be granted at a later date, in the current year we recognize the even portion of the vested right.
The vested right is expensed evenly over the service period.

Question 2

To find out total interest expense of a 5 year lease?

1. Total Interest = ( Total of Lease pymts- F.V of Property)

Answer 2

A. Find out the payments made on the lease:

F.V of lease/P.V of the annuity %

B. Find out the total interest:

Life of the lease(Payments made on the lease Part A)-F.V of the equipment = Total Interest.