Grenada Corporation Use the Note on Disclosure of Leases for the Grenada

question 146

Essay

Grenada Corporation
Use the note on Disclosure of Leases for the Grenada 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 2025.The Corporation normalizes fixed escalations in rental expense under its operating leases.Minimum annual rentals under non-cancelable operating leases,excluding operating cost escalations and contingent rental amounts based upon retail sales,are payable as follows:
Fiscal year ending March 31,
Rent expense was $12,551,000;$8,911,000;and $5,768,000 for the years ended March 31,2010,2009,and 2008 respectively.
Review the information for Grenada 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:

Glycogen

A form of glucose storage within the body, predominantly found in the liver and muscle tissues, serving as a primary energy reserve.

Immune System

The body's defense system comprised of organs, tissues, cells, and proteins that work together to fight off pathogens, such as bacteria, viruses, parasites, and fungi.

Cell Growth

The process by which cells increase in size and number, contributing to the overall growth of an organism.

Triglycerides

A type of fat found in your blood, used by the body for energy, but high levels can increase the risk of heart disease.