Anyone can help with this?

I thiink this example just want to show you how to treat an operating lease as finance lease, how to calculate the pv of the operating lease. Back to your question, noted that in the stem of this example part B, $800 equity is reported at the inception of the lease. Change an operating lease to a finance lease will affect the NI because the depreciation and interest expense in finance lease will expand over the lease payment in operating lease. But I think this change should be reported in the next year of the inception, not the incept year. So $800 equity may not be changed in the calculation.

thz for ur replying:D understood!