CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 5 Partially correct Mark 0.67 out of 1.00 Flag question Analyzing and Interpreting Footnote on Both Operating and Capital Leases Verizon Communications Inc. provides the following footnote relating to its leasing activities in its 10-K report. The aggregate minimum rental commitments under noncancelable leases for the periods shown at December 31, 2014 are: (in millions) Capital Leases Operating Leases 2015 $181 $2,499 2016 137 2,245 113 1,960 2017 1,660 2018 68 2019 39 1,369 60 4,670 Thereafter $14403 598 Total minimum rental commitments 82 Less interest and executory costs Present value of minimum lease payments 516 158 Less current installments $358 Long-term obligation at December 31, 2014 Assuming that this is the only available information relating to its leasing activities, what amount does Verizon report on its balance sheet for its lease obligations? million $516 Does this amount represent its total obligation to lessors? OYes ONO Based on the information provided by Verizon in this footnote, what amount of interest expense will it report on capital leases in 2015? Prepare a journal entry to record the 2015 lease payment. General Journal Debit Credit Description 2,189 X Lease liability nterest expense 82 X Cash 2,234x d. Estimate the present value of Verizon's operating leases using a 5% discount rate. Round to the nearest whole number. 62358 million What would be the effect on Verizon's balance sheet if these leases were reported as capital leases? OVerizon's assets would not change and liabilities would increase if these leases were reported as capital eases OVerizon's assets and liabilities would not change if these leases were reported as capital leases. OVerizon's assets and liabilities would increase if these leases were reported as capital leases. OVerizon's assets and liabilities would decrease if these leases were reported as capital leases