APPLIED RESEARCH EXERCISES - ACCOUNTING ISSUES MEMO Your company, Rich UIC Alum CPA (RACPA), is considering getting office space for its expanding public accounting business Impress YourClinets INC (IYC), offers multiyear licenses to use on luxury office space in the heart of the Chicago Business District. The luxury licenses to customers including a 5 year licenses, or for a 7 year, "life of the office space," license. Customers who sign agreements have the right to use a specified suite of office spaces in the Sears Tower (i.e., suite no, 1045) for the dates specified in the license agreement. IYC also offers customers with more limited budgets the option to license suites in 3 month terms. Payment for the suite license is due in full annually at license start date and every year after for multi-year licensees and at the beginning of each 3 month term for the shorter duration licenses. To help maintain and keep offices clean, Pristine Offices Corp (a third party) will provide premium maintenance services to be billed separately license holders on a monthly basis should RACPA accept the deal, they could contract via Pristine, or handle maintenance on their own. Your manager has asked you to evaluate two scenarios that RACPA is considering: 1. A 5-year luxury suite license 2. A license for 3 months. You are asked to write an Accounting Issues Memo to address whether the office licenses in these two scenarios are considered a lease for RACPA. You are NOT required to determine the type of lease (e.g. operating vs. finance lease), but rather whether the license contract contains a lease