1. Refer to disclosure note 22 following Targets financial statements. What is the amount reported for capital leases (shown as the present value of minimum lease payments)? What is the total of those lease payments? What accounts for the difference between the two amounts? 2. What is the total of the operating lease payments? New lease accounting guidance (discussed in Chapter 15) will require companies to report operating leases at present value as well as capital leases (now called finance leases). If Target had used the new lease accounting guidance in its 2016 financial statements, what would be the amount reported for operating leases? Hint: Assume the payments after 2020 are to be paid evenly over a 16 years period and all payments are at the end of years indicated. Target indicates elsewhere in its financial statements that 6% is an appropriate discount rate for its leases.