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<br /> 8
<br /> HOMELESS ASSISTANCE CENTER, INC .
<br /> Notes to Financial Statements
<br /> (S) Leasehold Interest
<br /> Effective November 1 , 2000 , the Organization received contributions of leasehold rights
<br /> for a building for a thirty-year term . The Organization ' s rent under a signed lease
<br /> agreement is $ 1 per year. The present value of the fair market rent over the lease term,
<br /> which amounts to $ 659 , 711 , was determined using an 8 % discount rate, and has been
<br /> recognized as temporarily restricted support. The leasehold interests as of June 30 , 2001
<br /> are classified as follows :
<br /> Future leasehold rights $ 631 , 704
<br /> Less current portion 2 , 116
<br /> Leasehold interest — noncurrent $ 629 , 588
<br /> On May 7 , 2002 , the Organization vacated this building and the lease was assigned to
<br /> the Indian River Homeless Services Council, Inc . Accordingly, the Organization
<br /> charged off the related leasehold interest of $ 629 , 588 and leasehold improvements of
<br /> $ 32 ,389 as a transfer to the Indian River Homeless Services Council , Inc .
<br /> (6) Note Payable and Long- Term Debt
<br /> The Organization has a line of credit arrangement with a bank for borrowings of up to
<br /> $ 20,000 , bearing interest at prime, and expiring August 31 , 2002 . The balance
<br /> outstanding as of June 30 , 2002 was $ 20 , 000 and no balance was outstanding as of June
<br /> 30, 2001 . Interest expense was $ 641 and $ 906 for the years ended June 30, 2002 and
<br /> 2001 , respectively.
<br /> The Organization ' s long-term debt as of June 30, 2002 was as follows :
<br /> 2002
<br /> Term loan payable in monthly installments of $ 265 , $
<br /> including interest at 9 . 75 °/x , through May 14 ,
<br /> 2005 , secured by vehicle with a book value of
<br /> $ 111211 8 , 046
<br /> Term loan payable in monthly installments of $ 180,
<br /> including interest at 11 % , through February. 3,
<br /> 2006 , secured by equipment with a book value
<br /> of $ 6 , 366 65477
<br /> Term loan payable in monthly installments of $ 191 ,
<br /> including interest at 6 . 75 % , through November
<br /> 152006 84588
<br /> 23 , 111
<br /> Less current maturities of long-term debt 54926
<br /> Long-term debt $ 17, 185
<br /> The aggregate maturities of long-term debt for the five years ending June 30 , 2007
<br /> follows : 2003 , $ 5 , 926 ; 2004 , $ 6, 505 ; 2005 , $ 6,453 ; 2006 , $ 3 , 362 ; and 2007, $ 865 .
<br /> (Continued)
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