Walmart Inc is the world's largest retailer. A large portion of the premises that the company occupies are leased. It's financil statements and disclosure notes revealed the following infomation:

Balance Sheet ($ in millions)

Assets 2017 2016

property:

prop under lease oblig. 11,637 11,096

Less: Accum Amort. (5,169) (4,751)

Liabilities

Current Liabilities:

Finance lease oblig. due 565 551

within 1 year

Long term debt:

Long term finance 6,003 5816

leasse obligation

1. The net asset "proper under finance lease obligation" has a balance of 6,468M. Liability for these leases total 6,568. Why do the asset and liability amounts differ:

2. Prepare a 2017 summary entry to record Walmart's lease payments, which were 800M.

3. What is the appropriate average interest rate on Walmart's finance leases? Explain what an average inter rate is and why it is important to Walmart.

Please explain calculations for average interest rate as well as other questions.

Thank you!