Delta Air Lines provides scheduled air transportation for passengers and cargo throughout the United States and globally a fleet of more than 900 aircraft. Information from its 2015 annual report follows.

We lease aircraft, airport terminals, maintenance facilities, ticket offices and other property and equipment from third parties. Rental expense for operating leases, which is recorded on a straight-line basis over the life of the lease term, totaled $1.2 billion for the years ended December 31, 2015 and 2014 and $1.1 billion for the year ended December 31, 2013. Amounts due under capital leases are recorded as liabilities, while assets acquired under capital leases are recorded as property and equipment. Amortization of assets recorded under capital leases is included in depreciation and amortization expense. Our airport terminal leases include contingent rents, which vary based upon facility usage, enplanements, aircraft weight and other factors. Many of our aircraft, facility and equipment leases include rental escalation clauses and/or renewal options. Our leases do not include residual value guarantees and we are not the primary beneficiary in or have other forms of variable interest with the lessor of the leased assets. As a result, we have not consolidated any of the entities that lease to us.
The following tables summarize our minimum rental commitments under capital leases and noncancelable operating leases (including certain aircraft flown by regional carriers) with initial or remaining terms in excess of one year for the years succeeding December 31, 2015 (in millions):

Required:
All questions relate to 2015 unless stated otherwise.
1. Solve for the unknowns (A, B, and C).
2. What is the net amount of capital lease assets on the balance sheet?
3. Why is the net amount of capital lease assets on the balance sheet different from the total amount of liabilities recorded on the balance sheet?
4. Compute Delta's Total debt to Total assets.
5. What entry would Delta make in 2016 to record the effects of capital leases existing at
December 31, 2015? You may omit the depreciation entry.
6. What is the amount of operating lease obligation on the balance sheet?
7. What is the present value of operating lease payments? Assume an 11% discount rate.
8. What entry would be made to convert the operating leases to ASU 2016-02 (ASC 842)?
Do not make an entry to reclassify long-term liabilities to current liabilities.
9. Recompute the Total debt to Total assets ratio after making the entry in requirement 8.
What is the percentage change from the ratio computed in requirement 4?

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December 31 $ in millions) 2015 2014 Assets S1,141 767 374 54,005 Flight and ground equipment under capital leases $ 1,112 782 $ 330 53,134 Less accumulated amortization Total assets Liabilities Current liabilities $ 148 $ 235 $ 42.284 Current obligation under capital leases Obligations under capital leases, less current obligations Total liabilities $ 107 S 291 $45,192 Year Ending December 31 2016 2017 2018 2019 2020 Thereafter Capital Leases Operating Leases $183 114 56 1,583 1,440 1,307 1,158 1,053 6,220 $ 12,761 29 39 Less amount representing interest Present value of net minimum lease payments