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

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 that, in addition to the above terms, the shopping mall will be entitled to 10% of the gross sales revenue generated from the store. Required: 1. For Contract A, determine if the contract contains a lease. 2. For Contract B, determine if the contract contains a lease
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
