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STUDEBAKER NATIONAL MUSEUM,INC. <br /> ' Notes to Financial Statements <br /> December 31, 2016 <br /> NOTE 8- OPERATING LEASES-CONTINUED <br /> tThe future aggregate annual minimum lease commitments, for leases with initial lease terms <br /> greater than one year, for the years ending December 31, 2016 over the next five years are as <br /> ' follows: <br /> 2017 $ 20,376 <br /> 2018 20,376 <br /> 2019 21,516 <br /> 2020 21,516 <br /> 2021 22,596 <br /> After 2021 70.048 <br /> ' $ 176,428 <br /> The Museum leases conference rooms and other Museum space to groups, businesses, <br /> ' organizations and individuals. For the year ended December 31, total rental income was <br /> $24,389-2016 and$28,715 -2015. <br /> At times,the Museum receives rent deposits on conference rooms and Museum space for future <br /> use. The deposits are recorded as deferred revenue on the Statement of Financial Position. <br /> Total rent deposits as of December 31,was $2,725 -2016 and $2,825 -2015. <br /> There are no aggregate minimum rental income agreements in excess of one year as of <br /> December 31, 2016. <br /> NOTE 9-RELATED PARTY TRANSACTIONS <br /> As more fully discussed in Note 1 to the financial statements, the Museum is related through <br /> ' voting control and economic interest with the Studebaker National Museum Foundation, Inc. <br /> (the Foundation). Members of the Museum's Board of Trustees appoint a majority of the <br /> Foundation's governing board and the Foundation's sole purpose is to solicit donations and <br /> ' administer funds for the benefit of the Museum. For the years ended December 31, 2016 and <br /> 2015,the Museum and Foundation have elected not to issue consolidated financial statements. <br /> ' The effect of not consolidating the financial statements of the variable interest entity,which is a <br /> departure from accounting principles generally accepted in the United States of America has <br /> not been determined. <br /> ' The Museum had the following transactions with related parties as of December 31: <br /> 2016 2015 <br /> ' Professional fees $ 470 <br /> Net payments(proceeds)from transactions <br /> with the Foundation 983 <br /> ' Asset and Liability Balances <br /> Accounts receivable 470 <br /> Accounts payable 12,404 $ 10,951 <br /> ' (See auditors'report.) <br /> 14 <br />