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Unformatted text preview: hat pretax amounts related to the leas e would Builders report in its inc ome s tatement for the y ear
ended Dec ember 31, 2013?
Pretax amount Exercise Learning Objective: 15-06
Des cribe and dem ons trate how
the les s or accounts for a s ales type leas e. On June 30, 2013, Georgia-Atlantic , Inc ., leas ed a warehous e fac ility from Builders , Inc . The leas e
agreement c alls for Georgia-Atlantic to mak e s emiannual leas e pay ments of $562,907 over a three-y ear
leas e term, pay able eac h June 30 and Dec ember 31, with the firs t pay ment at June 30, 2013. Geor...
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- Fall '09