Target Corporation prepares its financial statements according

to U$.$S$.$ GAAP. Target$$s financial statements and disclosure notes

for the year ended February $3,2018,$ are available here. This

material is also available under the Investor Relations link at the

company$$s website $($www$.$target.com$).($FV of $$1,$ PV of $$1,$ FVA of $$1,$

PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)($Use appropriate factor$($s$)$

from the tables provided.$)$ Required: In its Analysis of $$Financial

Condition: New Accounting Pronouncements,$$ Target$$s financial

statements for the year ended February $3,2018,$ the company

indicates that In February $2016,$ the FASB issued ASU No$.2016-02,$

Leases, to require organizations that lease assets to recognize the

rights and obligations created by those leases on the balance

sheet. The new standard is effective in $2019.$ Refer to Note $22$:

Leases. New lease accounting guidance requires companies to record

a right$-$of$-$use asset and a lease liability for all leases, with the

exception of short$-$term leases, at present value. If Target had

used the new lease accounting guidance in its fiscal $2017($February

$3,2018)$ financial statements, what would be the amount reported as

a liability for its leases, operating and capital $($finance$)$

combined $?($Do not round intermediate calculations. Enter your

answers to nearest millions. Round final answer to the nearest

whole value.$)$ Hint: Assume the payments $$after $2020$ are to be paid

evenly over a $16-$year period and all payments are at the end of

years indicated. Target indicates elsewhere in its financial

statements that $6\%$ is an appropriate discount rate for its

le

Target Corporation prepares its financial statements according to U$.$S$.$ GAAP. Target's financial statements and disclosure notes for the year ended February $1,2020,$ are available here. This material is also available under the Investor Relations link at the company's website $($

www$.$target.com$).$

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Required:

Note $17$ indicates that Target's finance lease liability at February $1,2020$ is $$1,370(=$$$67$ current $+$$$1,303$ noncurrent$)$ while its finance lease assets are $$1,180.$ Why do the asset and liability amounts differ?

Target's finance lease assets are listed on February $1,2020,$ at $$1,180$ million. What was the original amount recorded for these specific right$-$of$-$use assets when the leases commenced?

Refer to Target's Statement of Cash Flows. Prepare a journal entry that summarizes Target's acquisition of assets by operating lease for the twelve months ended February $1,2020.$

Complete this question by entering your answers in the tabs below.

Target's finance lease assets are listed on February $1,2020,$ at $$1,180$ million. What was the original amount recorded for these specific right$-$of$-$use assets when the leases commenced?

Note: Enter your answer in millions $($i$.$e$.,10,00,000$ should be entered as $10).$

Original amount recorded for right$-$of$-$use assets