Refer to the Table below from Starwood Hotels & Resorts Worldwide, Inc.s 2014 Annual Report for capital leases (note 18 of the notes to the financial statements). Using the information provided, answer the following questions:

1. What is the present value of future minimum capital lease payments for Starwood Hotels?

2. Suppose that the capital lease payments after 2019 will be equally paid over the next 5 years. Calculate the capital lease discount rate for Starwood Hotels.

3. What is the journal entry for capital lease payment in fiscal year 2015?

STARWOOD HOTELS & RESORTS WORLDWIDE, INC. NOTES TO FINANCIAL STATEMENTS Note 18. Leases and Rentals We lease certain equipment for the operations of our hotels under various lease agreements. The leases extend for varying periods through 2022 and generally are for a fixed amount each month. In addition, our corporate headquarters and several of our hotels are subject to leases of land or building facilities from third parties, which extend for varying periods through 2097 and generally contain fixed and variable components. The variable components of leases of land or building facilities are primarily based on the operating profit or revenues of the related hotels. Our minimum future rents at December 31, 2014 payable under non-cancelable leases with third parties were as follows (in millions): Years Ending December 31, Operating Leases Capital Leases 2015 $ 80 $ 11 2016 78 11 2017 64 11 2018 59 12 2019 59 12 Thereafter 667 216 Total minimum lease payments $ 1,007 $ 273 Less amount representing interest (117) Present value of minimum lease payments $ 156