Finance Lease Example Wrong?

[smartmoney]

Hi all,

 

I'm quite confused on handling payment at the beginning of the lease period.

Curriculum 2013 vol2 p.80 Example 11

 

The income statement for solution 1 shows that the interest expense of $7132 is booked to year 1.

 

But the CF statement for solution 2 shows that the interest paid of $7132 is booked to year 2.

 

Very Confused?! Or is it something wrong in this example in Curriculum???

 

Can anyone please help to clarify.

 

 

Larry.