Capital Lease Obligation

12 Months Ended

Feb. 28, 2015

Note 6. Capital lease obligation


	February 28, 2015		February 28, 2014

Capital lease – race car, interest at 10%, payments of $680 per month, term 5 years	$	27,725	$	—

Less: current portion of capital lease obligations		5,645		—
	$	22,080	$	—

The lease for the racecar meets the accounting criteria for a capital lease with the lease covering over 75% of the economic life of the asset.

Capital Leases-Future Minimum Lease Payments

The future minimum lease payments required under the capital leases and the present value of the net minimum lease payments as of February 28, 2015 are as follows:


For the periods ending February 28,
2016	$	8,160
2017		8,160
2018		8,160
2019		8,160
2020		1,375
Total minimum lease payments	$	34,015

Total minimum lease payments	$	34,015
Less: Amount representing interest		(6,291	)
Present value of net minimum lease and debt payments		27,724
Less: Current maturities of capitalized lease obligation and debt		(5,645	)
Long-term capitalized lease obligation	$	22,080