The following lease information was obtained by a staff auditor for a client, Kroller Inc., at December
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Leased building; minimum lease payments per year; 10 years remaining life on
December 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 45,000
Executory costs per year . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000
Capitalized lease value, 12% interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343,269
Accumulated amortization of leased building at December 31, 2013 . . . . .. . . . . . 114,423
Amortization expense for 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,885
Obligations under capital leases; balance at December 31, 2013 . . . . . . . . . . . . . . 239,770
Obligations under capital leases; balance at December 31, 2012 . . . . . . . . . . . . . . 254,259
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