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Questions 1. Explain why the amount of Operating lease assets differs from the amounts of total operating lease liabilities. 2. Estimate how the fiscal 2018
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1. Explain why the amount of Operating lease assets differs from the amounts of total operating lease liabilities.
2. Estimate how the fiscal 2018 income statement would change if the operating leases were treated as finance lease (provide assumptions and show how to estimate)
3. Estimate how the February 2, 2019 balance sheet would change if the operating leases were treated as finance lease (provide assumptions and show how to estimate
Target adopted the new leasing standard for the year ended February 2, 2019, using the modified retrospective approach outlined in ASC Topic 842. All questions relate to the year ended February 2, 2019 (fiscal 2018) unless stated otherwise. The supplemental information for the fiscal 2018 statement of cash flows reports that $130 of leased assets were obtained in exchange for new finance lease liabilities, and $246 of leased assets were obtained in exchange for new operating lease liabilities. Presented below is information from Target Corporation's Form 10-K, Note 18, for the year ended February 2, 2019. mo 190 February 2, February 3, Leases (millions) Classification 18 2019 2018 Assets 000.00 TAKO Operating Operating Lease Assets $1,965 Finance Buildings and Improvements, net of w 872 Accumulated Depreciation(a) Total leased assets $2,837 $1,884 836 $2,720Step by Step Solution
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