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E7. In Footnote 10 of the 2015 financial statements, Hyatt (H) shows the following future operating lease infortion Years Ending December 31, 2016 Operating Leases
E7. In Footnote 10 of the 2015 financial statements, Hyatt (H) shows the following future operating lease infortion Years Ending December 31, 2016 Operating Leases $ 41 Capital Leases 2017. 2018. . 2019 2020. . . Thereafter. ...- $ 3 2 2 2 2 10 $21 39 38 28 474 $653 . Total minimum lease payments. Less amount representing interest . . , , , , , . . . , , , , , , . , , , , , Present value of minimum lease payments... . 5 $16 a. Assuming the capital lease payments after 2020 will be $2 per year, what is the implied discount rate on H's capi leases? Now assume a discount rate of 6 percent for H's operating leases. Estimate the unrecognized asset and liability for assets acquired under operating leases for H at December 31, 2015 b. c. Given the estimated unrecognized liability calculated in part b., what impact does including this amount have on the liabilities of H reported on the balance sheet
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