2:16 .! 4. Charter Corp. manufactures office equipment and supplies throughout the U.S. The company owns property, plant, and equipment and also enters into operating leases for certain facilities. The company's tax rate is 35%. Listed below is selected financial data for Charter and the company's operating lease disclosure 2012 2011 2010 S178,454 Property, Plant, & Equipment (net) Total Assets Common Shareholders' Equity S162,369 424,545 $155,388 410.256 515,685 302,754 298,564 289,455 Sales S986,258 5888,965 Cost of Goods Sold 693,857 588,920 Depreciation Experise Interest Expense 84,253 75,689 Net Income 124,581 91,025 Charter Corp. Operating Lease Disclosure (amounts in thousands) Operating Lease Commitments at the end of 2012 Year 2013 2014 2015 Reported Lease Commitments $ 25,239 S 52,800 $ 78,924 $ 48,760 $ 45,678 $212,000 2016 2017 Beyond 2017 As an analyst you wish to restate Charter's operating leases into capital leases. Required: a. Using the information in the operating lease disclosure, and assuming that Charter has an incremental borrowing rate for secured debt of 8%, restate the operating leases into capital leases