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    Capital lease payments

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    When a lease payment is made, is the payment split between interest and principal with the interest going to the P & L and the principal being applied to the liability? Or does the entire amount of the lease payment go directly to the P & L?

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    https://brainmass.com/business/leasing/capital-lease-payments-361263

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    For a capital lease, the payment is split into interest and principal ...

    Solution Summary

    The solution explains the accounting treatment of capital lease payments

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