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Under a capital lease, the lease payments are divided into two components. What are they?

Under a capital lease, the lease payments are divided into two components. What are they?

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Answer #1
A capital lease is a lease in which the lessor only finances the leased asset, and all other rights of ownership transfer to the lessee.
This results in the recordation of the asset as the lessee's property in its general ledger, as a fixed asset.The lessee can only
record the interest portion of a capital lease payment as expense.In effect the capital lease accounting treatment deals with asset
as it it had been purchased using a loan as finance.
The Lease payments are divided into two components principal and interest to clear the loan balance over the term,
and to charge the profit and loss account with the interest.
The answer is Principal and Interest.
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