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NOTE: This Problem Requires Present Value Information As an Analyst You Wish to Restate Paperclip's Operating Leases

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NOTE: This problem requires present value information.
Paperclip Company manufactures office equipment and supplies throughout the U.S. The company owns property, plant, and equipment and also enters into operating leases for certain facilities. The company's tax rate is 35%. Listed below is selected financial data for Paperclip and the company's operating lease disclosure.
NOTE: This problem requires present value information. Paperclip Company manufactures office equipment and supplies throughout the U.S. The company owns property, plant, and equipment and also enters into operating leases for certain facilities. The company's tax rate is 35%. Listed below is selected financial data for Paperclip and the company's operating lease disclosure. Papercli Conl. Operating Lease Dischsure (amounts in thousands) Operating Lease Comunitments at the end of 2005 \begin{array}{|l|l|} \hline\\\hline\\ \hline \text { Reported Lease Commitments } & \text { Year } \\ \hline \$ 25,239 & 2006 \\ \hline \$ 52,800 & 2007 \\ \hline 78,924 & 2008 \\ \hline \$ 48,760 & 2009 \\ \hline \$ 45,678 & 2010 \\ \hline \$ 212,000 & \text { Beyond 2011 } \\ \hline \end{array} As an analyst you wish to restate Paperclip's operating leases into capital leases. Required: Papercli Conl.
Operating Lease Dischsure
(amounts in thousands)
Operating Lease Comunitments
at the end of 2005
 Reported Lease Commitments  Year $25,2392006$52,800200778,9242008$48,7602009$45,6782010$212,000 Beyond 2011 \begin{array}{|l|l|}\hline\\\hline\\\hline \text { Reported Lease Commitments } & \text { Year } \\\hline \$ 25,239 & 2006 \\\hline \$ 52,800 & 2007 \\\hline 78,924 & 2008 \\\hline \$ 48,760 & 2009 \\\hline \$ 45,678 & 2010 \\\hline \$ 212,000 & \text { Beyond 2011 } \\\hline\end{array} As an analyst you wish to restate Paperclip's operating leases into capital leases. Required:
NOTE: This problem requires present value information. Paperclip Company manufactures office equipment and supplies throughout the U.S. The company owns property, plant, and equipment and also enters into operating leases for certain facilities. The company's tax rate is 35%. Listed below is selected financial data for Paperclip and the company's operating lease disclosure. Papercli Conl. Operating Lease Dischsure (amounts in thousands) Operating Lease Comunitments at the end of 2005 \begin{array}{|l|l|} \hline\\\hline\\ \hline \text { Reported Lease Commitments } & \text { Year } \\ \hline \$ 25,239 & 2006 \\ \hline \$ 52,800 & 2007 \\ \hline 78,924 & 2008 \\ \hline \$ 48,760 & 2009 \\ \hline \$ 45,678 & 2010 \\ \hline \$ 212,000 & \text { Beyond 2011 } \\ \hline \end{array} As an analyst you wish to restate Paperclip's operating leases into capital leases. Required:

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