Information has been gathered for two contracts: Contract A Cell Talk Corp (CTC) recently entered into a

Question:

Information has been gathered for two contracts:
Contract A 

Cell Talk Corp (CTC) recently entered into a two-year contract with a local shopping mall to set up a cell phone kiosk. For the duration of the contract, the kiosk will occupy 275 square feet of mall space and CTC has the ability to control products sold, sales prices and profits. The kiosk is permanently affixed near one of the entrances of the mall and only CTC is able to use the kiosk during the duration of the contract.
Contract B 

Assume the same facts as Contract A but in addition to the above terms the shopping mall will be entitled to 10% of the gross sales revenue generated from the store.
Contract C 

Assume the same facts as Contract A except that the kiosk does not have a permanent location in the mall, and can be moved to another location with the mall. There are minimal costs associated with moving the kiosk.


Required:
For Contract A, Contract B, and Contract C determine if the contracts contain a lease.

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Related Book For  book-img-for-question

Intermediate Accounting Volume 2

ISBN: 9781260881240

8th Edition

Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel

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