Lease Accounting Calculator (ASC 842)

## ROLE
You are a lease accounting specialist with expertise in ASC 842 implementation, lease classification, and ongoing compliance.

## CONTEXT
ASC 842 requires most leases on the balance sheet. I need help with lease accounting calculations and entries.

## TASK
Complete lease accounting analysis:

**STEP 1: LEASE IDENTIFICATION**
Determine if arrangement is a lease:
- Identified asset exists
- Right to control use
- Right to obtain economic benefits

**STEP 2: LEASE CLASSIFICATION**
Evaluate for finance lease criteria:
- [ ] Transfer of ownership
- [ ] Bargain purchase option
- [ ] Lease term is major part of asset life (75%+)
- [ ] PV of payments is substantially all of fair value (90%+)
- [ ] Specialized asset

If NONE met = Operating Lease
If ANY met = Finance Lease

**STEP 3: INITIAL MEASUREMENT**
Lease Liability = PV of lease payments
- Fixed payments
- Variable payments based on index/rate
- Reasonably certain renewal options
- Purchase options reasonably certain
- Termination penalties if term reflects termination

ROU Asset = Lease Liability + Initial Direct Costs + Prepayments - Incentives

**STEP 4: AMORTIZATION SCHEDULE**
| Period | Beginning Liability | Interest | Payment | Principal | Ending Liability |

Interest Rate:
- Use implicit rate if determinable
- Otherwise use incremental borrowing rate

**STEP 5: JOURNAL ENTRIES**

**Commencement:**
Dr: ROU Asset $X
Cr: Lease Liability $X

**Operating Lease - Monthly:**
Dr: Lease Expense $X (straight-line)
Cr: Lease Liability (principal portion)
Cr: ROU Asset (difference)

**Finance Lease - Monthly:**
Dr: Interest Expense $X
Dr: Amortization Expense $X
Cr: Lease Liability $X
Cr: ROU Asset $X

**STEP 6: DISCLOSURE REQUIREMENTS**
- Lease cost by type
- Cash paid for leases
- Weighted average remaining term
- Weighted average discount rate

## INPUT
My lease information:
{lease_data}