If MGM were to capitalize their operating leases, how much interest expense and amortization expense will they recognize in fiscal 2004 on these leases? How does this compare to the amount of expense they recognized in fiscal 2003 using an operating lease treatment? Assume that MGM uses the straight line method of amortization over the estimated remaining lease life of 20 years. If you were an analyst, how would you treat MGM's operating leases? An analyst should look at leverage ratios and capitalize the operating leases take the present value of the minimum lease payments under the operating lease and then add to balance sheet as a liability