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Kroger reported the following lease information in its most recent annual report (in $ millions). You determine that a discount rate of 5.2% is appropriate
Kroger reported the following lease information in its most recent annual report (in $ millions). You determine that a discount rate of 5.2% is appropriate for Kroger and have summarized your analysis as listed below. How much should Kroger have reported on its balance sheet as lease liabilities?
Future period | Lease amount | PV @ 5.2% |
Year 1 | $359 | $341 |
Year 2 | 404 | 365 |
Year 3 | 432 | 371 |
Year 4 | 437 | 357 |
Year 5 | 444 | 345 |
Thereafter | 5,366 | 3,036 |
$7,442 | $4,815 |
$341 | ||
$7,442 | ||
$2,627 | ||
$4,815 |
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