RadioShack entered into a sale/leaseback of its corporate campus in 2005. (Be careful – the questions ask questions regarding multiple years)
Why did RadioShack enter into the 2005 sale/leaseback transaction?
What economic advantages do you see in the 2005 sale/leaseback?
What economic disadvantages do you see in the 2005 sale/leaseback?
What financial reporting (accounting) advantages do you see in the 2005 sale/leaseback?
At December 31, 2005, what was RadioShack obligated to pay in minimum lease payments for the corporate campus? Was this amount reflected on RadioShack’s 2005 balance sheet? Why or why not?
The Sale/Lease document is at