USA Capital/Finance Lease w/ tax on invoice

[CraigA]

Hello all. New to posting on this forum but have used it many times in the past to look at other threads.

I have a capital lease that I just entered into, here are some of the details:

Equipment cost is 72,495 (76,120 with tax).
Term is 60 months, with monthly payment of 1,370.15 paid at beginning of the month.
Implicit Interest Rate is 5.0%.
PV of minimum lease payments is 72,605.
Total Interest charge over the lease is 9,604.
Lessor sends monthly invoice of 1,370.15 plus 68.52 tax, total of 1,438.67.

Having the lessor charge me tax separately is new to me. I believe the asset that needs to be recorded on my balance sheet should be the PV of minimum lease payment (72,605). Am I correct on that - or should the asset & obligation that goes on the books factor in tax? I believe that the tax should be expensed as the invoice(s) are received. Or do I need to somehow factor the tax into the balance sheet asset & obligation?
I've been reading on FASB No.13 and other statements, but can't see the tax be called out specifically in any of the language I'm reading.

Thanks for all your help!

 

[kirby]

Read FASB 13 paragraph 10. It says when you record a capital lease exclude that portion of payments representing taxes.