=+1. Human Genome Sciences, Inc ., a biopharmaceutical company, discov-

ers, develops, and markets new gene and protein-based drugs. Its 1998 annual report showed property, plant, and equipment net of accumu-

lated depreciation of $20,965,000 with total net assets of $244,247,000.

A note on operating leases revealed the following:

Operating Leases The Company leases office and laboratory premises and equip-

ment pursuant to operating leases expiring at various dates through 2017. The leases contain various renewal options. Minimum annual rentals are as follows:

Years Ending December 31, 1999

$5,990,790 2000 6,074,955 2001 6,197,186 2002 6,278,051 2003 5,353,707 Thereafter (2004-2017)

35,001,144

$ 64,895,833 Required:

a. Assume that the company's cost of capital is 10 percent and that operating lease payments between 2004 and 2017 are equal amounts per year. By how much would Human Genome Sciences's property, plant, and equipment and its total net assets increase by on December 31, 1998 if these leases were capitalized?