Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 1, 2020, are available in Connect. This material is also available under the Investor Relations link at the company’s website (www.target.com).

Required:
1. Note 17 indicates that Target’s finance lease liability at February 1, 2020 is $1,370 (= $67 current + $1,303 noncurrent) while its finance lease assets are $1,180. Why do the asset and liability amounts differ?
2. Target’s finance lease assets are listed on February 1, 2020, at $1,180 million. What was the original amount recorded for these specific right-of-use assets when the leases commenced?
3. Refer to Target’s Statement of Cash Flows. Prepare a journal entry that summarizes Target’s acquisition of assets by operating lease for the twelve months ended February 1, 2020.