Question: Operating lease liability estimate - UPS a. Estimate the unrecognized asset and liability for United Parcel Service (UPS) operating leases as of December 31, 2019.

Operating lease liability estimate - UPS a. Estimate the unrecognized asset and liability for United Parcel Service (UPS) operating leases as of December 31, 2019. The appropriate discount rate is 3.29%. For the future operating lease payments beyond 2024 assume the payments are equal to those in 2024. Disclosed future operating lease payments (in millions) are:

2020	$619
2021	536
2022	451
2023	360
2024	256
Thereafter	1,267

b. For fiscal year 2019, prepare the related journal entries to record the liability and asset for the effective capitalization of the operating leases.

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