Topic: Analyzing Lease Footnote (3 points) 2. Reyes Corp. disclosed the following lease information in its 2016 annual report related to its leasing activities (in millions) Capital Operating Leases Leases 2017 $ 307 $ 2,471 2018 286 2,302 2019 262 1,202 2020 251 980 2021 116 830 Thereafter 703 9, 130 Total 1,925 $16,915 Amount representing interest (754) Present value of net minimum lease payments $ 1, 171 a. What effect does the failure to capitalize operating leases have on Reyes Corp.'s balance sheet? b . Over the life of the lease, what effect does this classification have on net income? Calculate the lease-related liabilities that are potentially missing from Reyes's 2016 balance sheet. Assume a discount rate of 12% and round the remaining lease life to the nearest whole year