and Capitalizing Operating Lease Payments Disclosed in Footnotes M. ntco Wholesale Corporation discloses the following in footnotes to its 10-K report relating to its Coste Analyzing an LO1 leasing activities. Corpat At the end of 2016, future minimumpayments. under noncancelable leases with terms of at least one year were as follows ($ millions): 195 184 166 Operating leases are not reflected on-balance-sheet. In our analysis of a company, we often capitalize these operating leases, that is, add the present value of the future operating lease payments to both the reported assets and liabilities. a. Compute the present value of Costco's operating lease payments assuming a 6% discount rate and round the remaining lease term to the nearest whole year. b. What effect does capitalization of operating leases have on Costco's total liabilities and total asets tuf reported total liabilities and total assets of $20,831 million and $33,163 million, respectively)