Please answer this question.

2. Operating lease to capital lease. You are analyzing the financial statements for Blue Tree Inc. In your analysis you notice the Blue Tree has a significant dollar amount of operating leases into the future; you are concerned with off-balance sheet financing. From the lease footnote disclosure, you have obtained the following information regarding operating leases for the next ten years: Year 1 Year 2 Year 3 Year 4 Year 5 Totals for Years 6-10 $550 $565 $580 $610 $640 $3,200 R You have also established that Blue Tree's cost of capital is 8%. Required: Convert Blue Tree's operating lease into a capital lease and demonstrate how this would be shown on the balance sheet. (20 points)