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Introduction to React If

For any coder or a Developer, applying If statements is one of the most basic skills they need. If statements are used to make behavioral changes in the product. For example, If a person’s age is above 18, he can drive a vehicle else; he is not eligible for driving. It also supports If statements. It comes under conditional rendering and is used just the way it is used in JavaScript. If a statement is used to match the condition, let the User Interface reaction be the basis of the user’s action. This article has covered some examples to help you understand how the If statement can be used to React to fulfill our requirements.

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Syntax

Working of If statement in React

As we can see in the above syntax of the If statement in React, Here, the age which the user provides is matched against the driving age, and if the user’s age fulfills the condition, then there is a success message; otherwise, the user is not eligible for driving. This was a basic example to understand the working of the If statement in React.

Examples of React If

Different examples are mentioned below:

Example #1 – Basic Example of React If

index.js (inside component folder)

import React from "react"; return ( ); }; return ( ); };

index.js (main file)

import React from "react"; import ReactDOM from "react-dom"; import { Button , Form } from "./components"; import "./styles.css"; class App extends React.Component { constructor(props) { super(props); this.state = { showForm: false }; } this.setState({ showForm: !this.state.showForm }); }; render() { let RenderedComponent; if (this.state.showForm) { } else { } } } const rootElement = document.getElementById("root");

chúng tôi

.App { font-family: times; text-align: center; }

Output:

Examples #2 – React If in a Form

Below we have made a registration form, where one can choose training according to one’s preference. The “If” statement is used so that no detail gets left unfilled. In the example below, we have used if statement in values.firstName, values.reception, values.street and values.pickupTime inside chúng tôi file.

chúng tôi

import React from 'react' import { render } from 'react-dom' import Styles from './Styles' import { Form , Field } from 'react-final-form' import pickupTimes from './pickupTimes' const sleep = resolve, ms) ) await sleep(300) window.alert(JSON.stringify(values, 0, 2)) } const Error = ( { name } { ( { meta: { error, touched } } } ) { ( { input: { value } } } ) Link to Our Website Please fill the below form so that we can customize the training and newsletter according to your Choices. <Form onSubmit={onSubmit} initialValues={{ EmploymentStatus: true, YourAdvisor: 'Rahul' }} const errors = {} if (!values.firstName) { errors.firstName = 'Required' } if (!values.reception) { errors.reception = 'Required' } if (values.reception === 'delivery') { if (!values.street) { errors.street = 'Required' } } else if (values.reception === 'pickup') { if (!values.pickupTime) { errors.pickupTime = 'Required' } } return errors }} > {({ handleSubmit , form , submitting , pristine <Field name="firstName" component="input" type="text" placeholder="Full Name" <Field name="reception" component="input" type="radio" value="liveinteractive" Live Interactive Training <Field name="reception" component="input" type="radio" value="selfpaced" Self Paced Training <Field name="street" component="input" type="text" placeholder="Your Address" {time} ))} <Field name="message" component="textarea" placeholder="Your Name" )} )

chúng tôi

import styled , { css } from 'styled-components' white-space: nowrap; display: inline-block; border-radius: 4px; padding: 4px 14px; font-size: 15px; color: #030303; &:visited { color: #baf573; } background-image: linear-gradient(${light}, ${dark}); border: 0.5px solid ${dark}; &:hover { background-image: linear-gradient(${light}, ${dark}); &[disabled] { background-image: linear-gradient(${light}, ${dark}); } } &:visited { color: #171716; } &[disabled] { opacity: 0.5; cursor: not-allowed; } const btnDefault = css` ${btn('#b5f7e3', '#e2f7b5')} color: #b7b8b4; const btnPrimary = btn('#d07dfa', '#7dd7fa') const btnDanger = btn('#eb6399', '#fcf586') export default styled.div` font-family: 'Times New Roman' , Times , serif; h1 { text-align: center; color: #cc235b; } h2 { text-align: center; color: #2623cc; } text-align: center; } a { display: block; text-align: center; color: #c780f2; margin-bottom: 9px; } p { max-width: 501px; margin: 9px auto; display: inline; } } .loading { font-size: 3em; font-weight: bold; text-align: center; margin: 49px; } form, div.form { text-align: left; max-width: 501px; margin: 9px auto; border: 0.5px solid #f58867; padding: 19px; box-shadow: 1px 1px 4px #f58867; border-radius: 2px; position: relative; display: flex; flex-flow: row nowrap; line-height: 1em; margin: 4px; position: relative; color: #ed4a96; width: 111px; min-width: 59px; font-size: 1.15em; line-height: 31px; } flex: 2; padding: 4px 6px; font-size: 1.15em; margin-left: 14px; border: 0.5px solid #7cf2e6; border-radius: 0.5px; } margin-top: 7px; } margin-left: 15px; margin-left: 0; display: block; margin-right: 2px; } } &.downshift { margin-left: 0; padding-left: 14px; flex: 1; width: 99%; padding: 5px 4px; font-size: 1.15em; margin-left: 0; border: 1.15px solid #d7f587; border-radius: 2px; } } } line-height: 29px; margin-left: 9px; color: #f52c2c; font-weight: bold; } ${btnDanger}; } } display: flex; flex-flow: row nowrap; justify-content: center; margin-top: 14px; } .error { display: flex; font-weight: bold; color: #f52c2c; flex-flow: row nowrap; justify-content: center; } pre { position: relative; border: 1.15px solid #e0faa5; background: #e6ff99; box-shadow: inset 2px 2px 2px #30302f; padding: 21px; } .submitting { display: block; position: absolute; top: -2px; left: -4px; right: -4px; padding: 0; text-align: center; background: #41423e; color: #f4f5f2; z-index: 11; font-weight: bold; font-size: 0.9em; } .saving { font-size: 0.9em; font-weight: bold; color: #516bed; margin: 9px 0 0 6px; } } button { margin: 0 9px; &[type='submit'] { ${btnPrimary}; } &[type='button'] { ${btnDefault}; } } .downshift-options { border: 2px solid #a0f2d8; box-shadow: 2px 2px 3px #1a1b1c; padding: 3px 5px; } } `

chúng tôi

const now = new Date(); let hours = now.getHours(); const times = []; if (now.getMinutes() < 30) { times.push(`${++hours}:30`); } else { hours++; } while (times.length < 6) { times.push(`${hours}:00`); times.push(`${hours}:30`); hours = ( hours + 1 ) % 24; } export default times;

Conclusion

Based on the above article, we understood the working of the If statement in React. Then, we went through a couple of examples to understand how an If statement can be used in different situations to change the behavior of the app according to the user’s action.

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Nested If Statement In Python

Introduction to Nested IF Statement in Python

Programming has surely come a long way from a simple “Hello World” program to all the modern day’s complex programs. With time new features got added to programming to cater to various needs.

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So we need to introduce some sort of Decision making capability to our programs to make them more robust.

Let us suppose we have a program in which we input a number from the user and check whether it is an even number or an odd number. It is a classic example of using a conditional statement. The following flowchart would help depict it more clearly:-

Examples of Conditional Statements in Python

This is an example of an elementary conditional statement for finding whether a number is even or not.

The following are the different kinds of Conditional Statements in Python: –

if statement

if-else statement

else-if statement

nested if statement

switch statement

In this article, we would focus mainly on Nested If Statements, for which we would have a little introduction of If Statements, and then we would jump to the main topic.

1. If Statements

Syntax: –

Let us look into the details of the syntax of the if-statement.

The most important component is the “if” keyword, which helps us identify an expression to be a conditional statement.

expr: – This signifies the condition, the fulfillment of which would execute the below statement. The expr is basically a Python statement that results in a Boolean value (True or False). The statement for the particular expr will get executed only if the value for the expr is True.

statement: – This is the final part of the if-statement, which is the path along which the program must flow if the expr is True.

This is just a recap of the if-statement in Python as the nested if is an extension of the same.

2. Nested If Statements

A nested if is an if statement that is the target of a previous if statement. Let us look at the syntax of a nested if-statement.

# Executes statement1 when expr1 is True # Executes statement2 when expr2 is True # Inner if-block ends here # Outer if-block ends here

Let us look at the flow chart of nested if-statement to have a better understanding of it: –

In the following example, we implement the nested if-statement on a program where the user inputs a number and checks different conditions with regards to that number. Though the program is very simple, the only intention is to discuss the nested if-statements’ flow.

Code: 

a = 10 print("Inside initial if") print("Number is greater than 5") print("Inside first nested if") print("Number is greater than or equal to 10") print("Inside second nested if") print("Number is greater than or equal to 15") print("Outside second nested if") print("Outside second nested if") print("Outside initial if")

Output: –

The nested if must be properly indented, the failure of which results in Indentation Error as follows: –

a = 10 print("Greater than 7")

Output: –

Colon (:) must be follow all the ifs in the nested if-statements; otherwise, invalid syntax error would occur as follows:

Code:

a = 10 print("Greater than 7")

Output: 

Conclusion

It is finally time to draw closure to this article. In this article, we learnt the need for Conditional Statements in programming, touched upon the basics of if-statement with its syntax. Lastly, we discussed about nested if-statements in Python in details. I hope by now you guys are able to appreciate the usage of nested if-statements in Python. Now it is time to write your own Python program implementing the concepts learnt in this article.

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How If Statement Work In Typescript

Introduction to TypeScript if

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Syntax:

In TypeScript, the superset of JavaScript so like that it has predefined functions, keywords and variables. Sometimes the user data’s are validating with the conditional statements like if, else etc. In TypeScript, the if statement will always return the boolean results.

if(boolean results) { }

The above codes are the basic syntax for utilising the if statement in the TypeScript. Based on the requirement analyses, the if statement will be called in the TypeScript in multi-tasking or big enterprise applications the nested if conditions are used to validate the user datas.

How if Statement Work in TypeScript?

In TypeScript, if-else is the one of the extensions and conditional loop statements for validating the user datas. The else block is one of the optional blocks in the programming languages; whenever the if condition is blocked, the loop will go to the else condition, so that if-else block facilitates the branching of the execution workflow into one or more number of blocks.

If we use some type of operators like boolean, ternary etc., like ternary operator they used the “?” symbol for to validate the user data, then the operands and operators are validating the datas using the if-else statement. An if-else statement will let the control for each execution of the statements based upon the conditional expressions also it includes the multiple else and if-clauses include else clause at each stage of the script always it return the boolean results for one conditional statement execution or multiple conditional statements execution.

If we use else if the clause in the script first executes if the statement is false, then it moves to else if the clause for execution so that the statement or statements will be executed and return the boolean result as true. We can also use nested if statements for the script.

Examples of TypeScript if

Given below are the examples of TypeScript if:

Example #1

Code:

var vars:string = "Welcome To My Domain your first input string kindly enter your datas" var vars1:string = "Welcome To My Domain your first input string kindly enter your datas" if(vars == "first"){ console.log("Your input is validated correctly") } else { console.log("Please try again.") } if(vars == vars1){ console.log("your both inputs are equal") } else { console.log("your both inputs are not equal") }

Output:

The first example we used if statement in different scenarios. We used two variables with string data values. We also validate the data, i.e.) we can compare the two variable values like vars and vars1 with conditional operators’ help; whatever we used in the operator, it will compare the operands and operators.

Example #2

Code:

var number = 6847; console.log(number + " Your inpur statement is executed and its valdiated the conditions Please provide your input on the actual text areas it will helpful for to validate its datas"); } else if (number < 0) { console.log(number + "Your inpur statement is not validated so the user inputs are not satisfied the conditions Please provide your input on the actual text areas it will helpful for to validate its datas"); } else { console.log(number + "Your inpur statement is not valid also your input datas are not valid in  the requirement conditions Please provide your input on the actual text areas it will helpful for to validate its datas"); } var vars="Welcome To My Domain Its a second example you have entered n number of datas for valdiating the input conditions so entered valid datas" if(vars == "Welcome To My Domain Its a second example you have entered n number of datas for valdiating the input conditions so entered valid datas") { console.log(vars + "Thanks for your input the application is validating your datas and after valdiation complete you move to next step"); } else{ console.log(vars + "Sorry User your input datas are not macthing the string conditions and also entered valid inputs and please try agian"); }

Output:

In the second example, we used the single variable with number datatype. We have initialised the variable value; that is, we declare any values that are related to the number. By using if statement, we have to check the string values by using the “==” operator and print the values with the help of the chúng tôi statement.

Example #3 var first = "Welcome To My Domain Please enter your inputs on the next line"; var last = "Its a Third example we used typeof, null and other pre-defined keywords"; var result= first + last; console.log(first); console.log(last); console.log(result); console.log(typeof first); console.log(typeof last); console.log(typeof result); console.log(null == undefined) console.log(null === undefined) if(first == null){ console.log('Welcome To My Domain Please enter your inputs on the next line'); } if(last == null){ console.log('Its a THird example we used typeof, null and other pre-defined keywords Please continue on this case'); } if(typeof result === 'undefined') { console.log('Its a Third example we used typeof, null and other pre-defined keywords Please continue on this case Please give your inputs on the exact input lines it will be useful for to validate your datas'); } else if(result === null){ console.log('Its a Third example we used typeof, null and other pre-defined keywords Please continue on this case'); }

Output:

In the final example, we used two variables with a nested if statement. So we have compare the variables with a different set of scenarios and pre-defined keywords. Additionally, we used “null, undefined” keywords for validating the conditions.

Rules and Regulations for if Statement

We validate the user data’s with a different set of scenarios like nested-if, if, else-if, else statement etc.

We used all the datatypes like integer or number, string, double etc.

Conclusion

In concluded part, generally, TypeScript has n number of keywords, variables and functions for creating the TypeScript application. For each type, we have used some conditional statements to validate the user data’s so that if it is one of the conditional statements, it will validate all the user data with a different type of data type.

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Working Of Localtime() Function In Perl With Examples

Introduction to Perl localtime

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Working of localtime() Function in Perl with Examples

In this article, we will see the Perl time function known as localtime(), which is defined as a function for returning the time elements related to the date and time of the system or program. In Perl, date and time codes usually need a Perl module known as the DateTime module, which contains various combinations of representation of date and time where; this module uses a New Style calendar, which is known as a geographic calendar.

In Perl, to display date and time that has analyzed time of the current time zone which is done by converting the given expression of time into a set of time elements which is an array of time elements and contains at least 9 element in this array which includes the time and date of the current time zone such as second, minute, hour, day, month, year, day of the week, day of the year, isdst.

Now let us see syntax and examples of localtime() function:

Syntax:

Use DateTime; localtime();

In this, if there is no argument passed, then the localtime() function returns the current date and time of the timezone.

or with expression : locatime expr;

In this, we can write expr anything which can display result related to time elements only.

In the above syntax, both can be used where the first one displays the set of time elements having 9 different elements defining the time of time zone. Then the second syntax can display only those time elements which are specified as expression (expr) in the syntax as seen in the above syntax section.

Example #1 #!/usr/local/bin/perl use DateTime; print "Demonstration of localtime() function in Perl"; print "n"; print "n"; print "The use of localtime() function without any arguments "; print "n"; $sys_dt = localtime(); print "The date and time of the system of the timezone which is used is :"; print "n"; print $sys_dt; print "n"; print "The localtime() function to display particular format of date and time"; print "n"; @mon_name = qw( Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ); @day_name = qw(Sun Mon Tue Wed Thu Fri Sat Sun); ($sec,$min,$hour,$mday,$mon,$year,$wday,$yday,$isdst) = localtime(); print "The current day name and month name is: "; print "n"; print "$mday $mon_name[$mon] "; print "$day_name[$wday] ";

Output:

In the above program, we can see we have first imported a Perl module for date and time as “use DateTime” so that we can use locatime() inbuilt function of Perl. In the above code, we are declaring a variable that stores the current date and time of the system where we are assigning this variable to store the value of the locatime() function and is displayed using the print command. In this, we have not passed any argument to the function, so it will just print the current day date and the current time in an hour, minutes and seconds along with the current year.

Then we are trying to use the localtime() function to display a particular date and time format, which we specify in print command where in the code we are printing only the current date with day and current month using localtime() function. Therefore we can use this function in both ways. We have written the month and day name in which format we want to display, and these are stored in the variables “mon_name” and “day_name” so that we can display in the same name which is defined here; we can also use full name to display here. The output can be seen in the above screenshot, which displays the system’s current date and time.

Example #2

Code:

#!/usr/local/bin/perl use DateTime; print "Demonstration of localtime() fucntion with argument in Perl"; print "n"; print "n"; $cur_dt = localtime(); print "The current date and time is as follows: "; print "n"; print $cur_dt; print "The elapsed time and date can be represented using time() function"; print "n"; $epoc = time(); $epoc = $epoc - 24 * 60 * 60; print "The elapsed time in seconds to display  yesterday's date and time is "; print "n"; print $epoc; print "n"; $cur_dt = localtime($epoc); print "The epoc passed as argument for displayng yesterday's date and time:"; print "n"; print $cur_dt;

Output:

In the above code, first, we import the “use DateTime” module for using the localtime() function. In this code, first, we have declared a variable to display the current date and time, which displays the current date and time of the system and then we are using another variable, “$epoc,” in which we are storing the number of seconds that are elapsed until the current day and time using time() function. Therefore we can see we have then passed this $epoc to the localtime() function, which displays yesterday’s date and time. The output for this code can be seen in the above screenshot.

Conclusion

In this article, we conclude that the localtime() function is a time function used to display the date and time of the time zone the system is using. This function returns the set or array of time elements which has 9 different elements of date and time such as hour, minutes, seconds, etc. In the article, we saw a simple example of using localtime() without argument and to display the particular date and time elements and also we saw another example where we are passing the elapsed time to display the elapsed date that is passed as an argument to the localtime() function.

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Python “Finally” Statement: An Ultimate Guide (With Examples)

In Python, the finally statement is helpful with error handling to ensure code executes.

For example, here the something_else() call does not run because it is not in an finally block:

try: something() except: return None something_else() # This does not get executed

But by placing it inside a finally block, it gets executed no matter what:

try: something() except: return None finally: something_else() # Always gets executed

This is a comprehensive guide to the finally statement in Python. You’ll learn what the finally keyword does and how you can use it in error handling. Besides, you will learn how the finally keyword works with continue and break statements.

Early Return with “finally” Statement

If your error handling code returns a value in the except block, the code that comes after that does not execute.

For example, let’s return a value from the function if an exception occurs.

def without_finally(): try: print(x) except: print("There was an error") return None print("Yay") without_finally()

As we tried to print an undefined value x, there was an exception. Thus the function returned a value and print("Yay") was never run.

There was an error

As you can see, "Yay" does not get printed out because the function exits before.

But if we place the print function call into a finally block, it indeed gets executed.

def with_finally(): try: print(x) except: print("There was an error") return None finally: print("Yay") with_finally()

Output:

There was an error Yay

So even though we return from the function inside the except block, the code in the finally block runs.

This is useful if you want to run cleanup code before exiting.

For example, you could close opened files in the finally block.

An Unexpected Error

In error handling, we expect certain types of errors in the except block(s).

But sometimes the error could be something that the except block is not prepared for.

When this happens, the finally block still gets executed.

To demonstrate, let’s try to write to a file. The code inside the try block throws an error unrelated to file writing:

file = open("example.txt", "w") try: print(x) file.write("Test") print("Writing to file.") except IOError: print("Could not write to file.") else: print("Write successful.") finally: file.close() print("File closed.")

Output:

File closed. Traceback (most recent call last): print(x) NameError: name 'x' is not defined

The except block did not run because we got a different kind of error than expected.

But still, the finally block was executed before propagating the error to the caller.

This would have been different without the finally block:

file = open("example.txt", "w") try: print(x) file.write("Test") print("Writing to file.") except IOError: print("Could not write to file.") else: print("Write successful.") file.close() print("File closed.")

Output:

Traceback (most recent call last): print(x) NameError: name 'x' is not defined

As you can see, the file would not be closed, and the final message would not have been logged.

Continue with “finally” Statement

In Python, the continue statement skips the “rest of the iteration” in a loop and continues to the next one.

If you use a continue statement in an error-handling code in a loop, any code after continue does not get executed.

For example:

def without_finally(): for i in range(5): try: print(x) except: print("There was an error") continue print("Yay") without_finally()

Output:

There was an error There was an error There was an error There was an error There was an error

Here “Yay” does not get printed out.

This is because the continue statement already jumped to the next iteration.

You can fix this by using the finally statement:

def with_finally(): for i in range(5): try: print(x) except: print("There was an error") continue finally: print("Yay") with_finally()

Output:

There was an error Yay There was an error Yay There was an error Yay There was an error Yay There was an error Yay Break with “finally” Statement

The break statement exits a loop in Python.

If you do error handling in a loop and you break the loop, the code after break will not be executed.

For example, let’s break a loop on an exception:

def without_finally(): for i in range(5): try: print(x) except: print("There was an error") break print("Yay") without_finally()

Output:

There was an error

Here, the “Yay” was not printed into the console, because the loop was escaped beforehand.

Let’s use the finally block to ensure the “Yay” gets printed:

def with_finally(): for i in range(5): try: print(x) except: print("There was an error") break finally: print("Yay") with_finally()

Output:

There was an error Yay Except Throws Another Exception

If you are not using finally statement, and there is an error in the except block, everything after that is not going to be executed.

For example:

def without_finally(): try: print(x) except: print("There was an error") print(y) print("Yay") without_finally()

Output:

There was an error Traceback (most recent call last): File "example.py", line 3, in without_finally print(x) NameError: name 'x' is not defined During handling of the above exception, another exception occurred: Traceback (most recent call last): without_finally() File "example.py", line 6, in without_finally print(y) NameError: name 'y' is not defined

This only prints “There was an error” before throwing the error. It does not print “Yay” after the error handling structure.

But if you used a finally block, the print("Yay") would also be executed.

def with_finally(): try: print(x) except: print("There was an error") print(y) finally: print("Yay") with_finally()

Output:

There was an error Yay Traceback (most recent call last): File "example.py", line 3, in with_finally print(x) NameError: name 'x' is not defined During handling of the above exception, another exception occurred: Traceback (most recent call last): with_finally() File "example.py", line 6, in with_finally print(y) NameError: name 'y' is not defined Conclusion

Today you learned what is the point of the finally statement in Python error handling.

The finally statement is always executed no matter what. This is useful if you need to run cleanup code regardless of what happens.

For example, as a cleanup, you should always close a file no matter what.

I hope you find it useful.

Happy coding.

Further Reading

Example And Lease Payment In Income Statement

Definition of Lease Payment

Lease payment is the sum paid by the user of the asset (lessee) to the owner of the asset (lessor) for the right to use the asset over a period of time and as per the lease agreement. Lease payment is also called lease rental and is paid for a fixed period of time which is called a lease term.

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Explanation

There are so many factors that influence the calculation of lease payment like asset value, depreciation, discount rates, lessee’s credit score, and finance cost. Lease payments are generally done on monthly basis. It is like rent paid to use an asset. A leased asset can be a car, property, computer equipment, software, or any fixed asset.

How to Calculate Lease Payment?

To calculate the lease payment, we need three components, Depreciation, Finance cost, and tax.

Step 1

(net Capitalized Cost – Residual Value) / Lease Term

Net Capitalized cost: The selling price of the asset including the dealer fee, taxes if any, and excluding the down payment and any outstanding loan balances.

Residual Value: The value of the asset at the end of the lease period.

Lease Term: The time period for which the lease agreement is signed.

Step 2

Finance Cost: These are like the Interest charges the lessee would have to pay on the money used against the loan financing. To calculate the finance cost, we will add the residual value to the net capitalized cost and multiply it by the discount rate/Money factor. It is calculated as:

(Net Capitalized Cost + Residual Value) * Money Factor

Money factor: It is the interest rate decided in the lease agreement. It is usually given per annum, we have to divide by 24 to get the monthly rate.

Step 3

Tax: It is the sales tax charged by the local or state government. It is charged on selling price and is calculated as:

(Depreciation Cost + Interest Cost) * Sales Tax Rate

Formula of Lease Payment

The formula of the lease payment is derived by adding the three components discussed above.

Lease Payment = Depreciation Cost + Finance Cost + Sales Tax

Example of Lease Payment

Lessee Ltd took a machine on lease from Lessor Ltd for a lease term of 60 months. The selling price of the machine is $60,000 with the residual value after 60 months $2,000. The rate of interest applicable is 5%. Lessor ltd also had an outstanding loan on the machine for $5,000. The applicable sales tax rate is 2%. Calculate monthly lease payment.

Here is the calculation of monthly lease payment:

Amount ($)

Machine Value 60,000

Residual Value 2,000

O/s Loan 5,000

Interest Rate 5%

Sales Tax Rate 2%

Lease Term 24 (months)

Depreciation Cost is calculated using the formula given below:

First, we have to calculate the net capitalized cost,

Net Capitalized Cost is calculated as

Net Capitalized Cost = Machine Value – O/s Loan

Net Capitalized Cost = 60,000 – 5,000

Net Capitalized Cost = 55,000

Now , Depreciation Cost is calculated as using the formula given below:

Depreciation Cost = (Net Capitalized Cost – Residual Value) / Lease Term

Depreciation Cost = (55,000 – 2,000) / 24

Depreciation Cost = 2,208

Finance Cost is calculated using the formula given below:

(Net Capitalized Cost + Residual Value) * Money Factor

First, we have to calculate Money Factor,

Money Factor = Interest Rate / Lease Term

Money Factor = 5% /24

Money Factor = 0.002083333

Finance Cost is calculated as using the formula given below:

Finance Cost = (55,000 + 2,000) * 0.002083333

Finance Cost = 119

Sales Tax is calculated as

Sales Tax = (Depreciation cost + Finance Cost ) * Tax rate

Sales Tax = (2,208 + 119) * 2%

Sales Tax = 47

Monthly Lease payment is calculated as

Monthly Lease payment = Depreciation Cost +Finance Cost + Sales Tax

Monthly Lease payment =  2,208 + 119 + 47

Monthly Lease payment = $2,374

Lease Payment in Income Statement

There are two types of lease, Operating Lease and Finance lease. The accounting treatment and recording of lease payment in the Income statement depend upon the type of lease.

Operating Lease: A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership. Lease payment is recognized as an expense in the Income Statement of Lessee in case of operating lease

Finance Lease: A lease that transfers substantially all risks and rewards incidental to its ownership is called a Finance lease.

The asset is transferred in the books of the lessee at a fair value or present value of minimum lease payments, whichever is less.

Depreciation is charged by the lessee in its Income statement over the lease term or useful life, whichever is less.

Lease Rentals constitute principle repayment and Interest, Interest is charged in the Income Statement.

Importance of Lease Payment

It is important to understand the lease payments in order to correctly record them in the books of the lessor and lessee.

Lease payment is one of the major factors to decide the type of lease, operating lease, or finance lease. For example:

A lease is a finance lease where the Present value of Lease Rentals is equal or approximate to the fair value of the asset.

Benefits

Below are some of the benefits of Lease payments:

Lease payments are mostly done on monthly basis. So, there is no major outflow to cash at one time like in the case of purchasing the machinery. So, it helps to maintain the liquidity of the company.

The money saved from leasing the asset instead of buying can be utilized in other areas which need investment.

The risk of an asset becoming obsolete due to a change in technology lies with the owner of the asset.

Lease payments are shown as expenses in the books of the lessee which reduces its income and further reduces the tax liability.

In case, the value of the leased asset gets appreciated, the user of the asset has no right to such appreciated value.

In the case of an operating lease, the asset is not shown in the balance sheet of the company and is considered as a long-term debt, which affects its valuation.

Lease payment being an expense reduces the net income of the company which in turn shrinks the income available for the equity shareholders.

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