Antietam Corporation

Use the Note on Disclosure of Leases

question 149

Essay

Antietam Corporation

Use the note on disclosure of leases for Antietam Corporation to answer the questions that follow.

The Corporation leases office, warehouse and showroom space, retail stores and office equipment under operating leases, which expire no later than 2031. The Corporation normalizes fixed escalations in rental expense under its operating leases. Minimum annual rentals under noncancelable operating leases, excluding operating cost escalations and contingent rental amounts based upon retail sales, are payable as follows: $\begin{array}{l}\text { Fiscal year ending March 31, }\\\begin{array} { l r } 2017 & \$ 10,051,000 \\2018 & 11,121,000 \\2019 & 10,161,000 \\2020 & 9,063,000 \\2021 & 8,814,000 \\\text { Thereafter } & 46,681,000\end{array}\end{array}$ Rent expense was $12,551,000, $8,911,000, and $5,768,000 for the years ended March 31, 2016, 2015, and 2014, respectively.

-Review the information for Antietam Corporation.
Required
(1)What are the two types of leases that a company can have? Describe each briefly.

(2)Does the note disclosure show evidence of the two types of leases?

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Definitions:

Hydraulic Theory

A theory suggesting that the development and maintenance of a civilization is closely linked to its ability to create and manage large-scale water control systems.

River Valleys

Geographical areas formed by the land surrounding a river, often characterized by fertile soil and significant for early human civilizations.

Hydraulic Theory

A theory that suggests the control and management of water resources played a crucial role in the development of early civilizations.

Occupation Site

A location where evidence of past human activity is found, indicating the presence of work, living, or ceremonial spaces.