Presented in Illustration 21-31 are the financial statement disclosures from the 2007 annual report of Tasty Baking Company. Answer the following questions related to these disclosures.
(a) What is the total obligation under capital leases at December 29, 2007, for Tasty Baking Company?
(b) What is the book value of the assets under capital lease at December 29, 2007, for Tasty Baking Company? Explain why there is a difference between the amounts reported for assets and liabilities under capital leases.
(c) What is the total rental expense reported for leasing activity for the year ended December 29, 2007, for Tasty Baking Company?
(d) Estimate the off-balance-sheet liability due to Tasty Baking's operating leases at fiscal year-end 2007.