The following schedule was taken from the notes to the financial statements of Beth County Health District.

1. The schedule does not indicate the origin of the percentages of the debt applicable to the city. What is the most likely way these percentages were derived?
2. Compute the total amount of the City of Wyoming's direct and overlapping debt.
3. Another schedule in the city's annual report indicates that the city's net direct debt is 1.861 percent of the assessed value of its property and that net debt per capita is $354.47. The schedule reports that assessed value of property is $1,228,774,900 and that the population is 64,500. What would be the ratio of total net direct debt and overlapping debt to assessed value of property? What would be the total net direct and overlapping debt per capita?
4. Why might a statement user be at least as concerned with the ratios that include overlapping debt as with those limited to direct general obligation debt?
1. Where on the district's government-wide statement of net position, if at all, would each of the amounts reported on the schedule be reflected (or combined with other amounts)?
2. What is the significance of the amount representing interest?
3. Prepare a journal entry to record the 2014 capital lease payments. Assume that the leases incorporate an interest rate of 6.56 percent (a rate that when used to discount each of the lease payments yields $1,818, the total present value of minimum payments).
4. Prepare a journal entry to record the 2014 operating lease payments.
5. Suppose that the district's cost of capital is 6.56 percent and that the $25,079 in operating lease payments are for a period of five years from 2018 through 2022 (in equal amounts of $5,016). What is the present value of the district's operating lease obligations from 2014 through 2022? Of what significance is this amount to a statement user (i.e., why might it be as important as the actual debt reported on the balancesheet)?

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Capitalized Operating leases leases (in thousands) 2014 2015 2016 2017 2018 and thereafter Total minimum lease S 756 560 415 242 116 $11,696 7,949 6,388 5,475 25,079 payments representing interest 271 minimum payments S1.818 Less amount Present value of