Financial Statement Analysis Case Financial Statement Analysis Case You are reviewing the financial statements of Trident Incorporated and observed that Trident entered into a significant operating lease for office equipment at the end of the current year. Because of the nature of items leased and the length of the lease, you question the classification of the leases as operating. You are interested in assessing the income statement effect of classifying the lease as an operating versus a finance lease. Trident disclosed the following schedule of its lease payments: Year Future Lease Payments 2019 2020 2021 2022 2023 Thereafter S 750,000 750,000 750,000 750,000 750,000 3,750,000 7,500,000 2,891,575 Total lease payments Less imputed interest Present value of future $4,608,425 lease payments Financial Statement Analysis Case Financial Statement Analysis Case You are reviewing the financial statements of Trident Incorporated and observed that Trident entered into a significant operating lease for office equipment at the end of the current year. Because of the nature of items leased and the length of the lease, you question the classification of the leases as operating. You are interested in assessing the income statement effect of classifying the lease as an operating versus a finance lease. Trident disclosed the following schedule of its lease payments: Year Future Lease Payments 2019 2020 2021 2022 2023 Thereafter S 750,000 750,000 750,000 750,000 750,000 3,750,000 7,500,000 2,891,575 Total lease payments Less imputed interest Present value of future $4,608,425 lease payments