On October 1, 2021 Chicago Towers reached an agreement to rent the first floor space to Bailey's Steakhouse. The previous tenant also used the space as a restaurant but closed within 6 months of opening due to liquidity issues.

Chicago Tower's and Bailey's Steakhouse agreed to a one year lease for $10,000/month which was approved by the presidents of both companies. This will be the first location for Bailey's Steakhouse. The president of Bailey's Steakhouse is hopeful that the business will be successful despite the reduction in people returning to work downtown.

Determine if a contract exists for ASC 606. In other words are all of the criteria for a contract present in the agreement between Chicago Towers and Bailey's Steakhouse? Explain your answer.

Answer rating: 100% (QA)

To determine if a contract exists for ASC 606 Revenue from Contracts with Customers we need to assess whether all five criteria for a contract are pre... View the full answer