nalyzing and Interpreting Lease Footnote Disclosures he GAP Inc. discloses the following schedule to its fiscal 2018 (ended February 2, 2019) 10-K report relating to its leasing to its leasing act he aggregate minimum noncancelable annual lease payments under leases in effect on February 2, 2019, are as follows: Fiscal Year ($ millions) 2019 $1,156 2020 1,098 2021 892 2022 730 2023 539 Thereafter 1,520 Total minimum lease commitments $5,935 ompute the present value of GAP's operating leases using a 6% discount rate and round the remaining lease term to the nearest whole y ound each answer to the nearest whole number. 5 million Present Value Year 1 $ 1,091 Year 2 977 ✔ Year 3 749✔ Year 4 578 Year 5 403 After 5 1,135 x $ 4,904 x
nalyzing and Interpreting Lease Footnote Disclosures he GAP Inc. discloses the following schedule to its fiscal 2018 (ended February 2, 2019) 10-K report relating to its leasing to its leasing act he aggregate minimum noncancelable annual lease payments under leases in effect on February 2, 2019, are as follows: Fiscal Year ($ millions) 2019 $1,156 2020 1,098 2021 892 2022 730 2023 539 Thereafter 1,520 Total minimum lease commitments $5,935 ompute the present value of GAP's operating leases using a 6% discount rate and round the remaining lease term to the nearest whole y ound each answer to the nearest whole number. 5 million Present Value Year 1 $ 1,091 Year 2 977 ✔ Year 3 749✔ Year 4 578 Year 5 403 After 5 1,135 x $ 4,904 x
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter20: Accounting For Leases
Section: Chapter Questions
Problem 9E: Lessor Accounting with Guaranteed Residual Value Use the information for Edom Company in E20-8,...
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![Analyzing and Interpreting Lease Footnote Disclosures
The GAP Inc. discloses the following schedule to its fiscal 2018 (ended February 2, 2019) 10-K report relating to its leasing to its leasing activities.
The aggregate minimum noncancelable annual lease payments under leases in effect on February 2, 2019, are as follows:
Fiscal Year ($ millions)
2019
$1,156
2020
1,098
2021
892
2022
730
2023
539
Thereafter
1,520
Total minimum lease commitments $5,935
Compute the present value of GAP's operating leases using a 6% discount rate and round the remaining lease term to the nearest whole year.
Round each answer to the nearest whole number.
$ million Present Value
Year 1
$
1,091
Year 2
977
Year 3
749✓
Year 4
578 ✓
Year 5
403
After 5
1,135 x
$
4,904 x](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7166f556-b438-4b40-b98f-4009ae0ebd1b%2F528c56db-7527-4417-a0a8-ecf770b86efd%2Fupd4kk_processed.png&w=3840&q=75)
Transcribed Image Text:Analyzing and Interpreting Lease Footnote Disclosures
The GAP Inc. discloses the following schedule to its fiscal 2018 (ended February 2, 2019) 10-K report relating to its leasing to its leasing activities.
The aggregate minimum noncancelable annual lease payments under leases in effect on February 2, 2019, are as follows:
Fiscal Year ($ millions)
2019
$1,156
2020
1,098
2021
892
2022
730
2023
539
Thereafter
1,520
Total minimum lease commitments $5,935
Compute the present value of GAP's operating leases using a 6% discount rate and round the remaining lease term to the nearest whole year.
Round each answer to the nearest whole number.
$ million Present Value
Year 1
$
1,091
Year 2
977
Year 3
749✓
Year 4
578 ✓
Year 5
403
After 5
1,135 x
$
4,904 x
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