Be Our Guest GuestLodge, Inc. enters into a service agreement with the U.S. National Park Service. The contract gives GuestLodge the right to operate the Wilderness Lodge in a national park-an upscale hotel and restaurant lodge in the heart of a national park. Guest Lodge must pay an upfront fee of $1 million to be used toward capital improvements in the lodge and for trail maintenance and parking lot maintenance. Per the Agreement, Guest Lodge has the right and obligation to operate the lodge and must remit 10% of all gross sales to the National Park Service. Evaluate the proper accounting and framework for this contract-is it a service concession arrangement? How does this impact your evaluation of whether the contract is a lease or how revenue should be recognized? Consider by analogy any public company filings.

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TUWS hinancial statements, uu lile customer $120,000 in damages. Must the company I ulls ruling in its 20x2 financial statements? Explain. Are "unconditional promises to give" required to be recognized as liabilities? e ASC 350-40 (Intangibles-Internal Use Software) specifically states that capitalization of costs (in an internal use software project) may begin when two criteria are met. What are these two criteria? 19. An employer offers each of its 50 employees 20 vacation days per year. As of January, no employees have taken vacation; however, each employee has earned 1.5 days. Vacation days that are unused at the end of the year may be carried forward to the following year. The employer encourages employees to use their full vaca- tion allotment and thus does not anticipate forfeitures. Must the employer record a liability for the employees' vacation days earned thus far? CASE STUDY QUESTIONS 6.1 Be Our Guest GuestLodge, Inc. enters into a service agreement with the U.S. National Park Service. The contract gives GuestLodge the right to operate the Wilderness Lodge in a national park-an upscale hotel and restaurant lodge in the heart of a national park. Guest Lodge must pay an upfront fee of $1 million to be used toward capital improvements in the lodge and for trail maintenance and parking lot maintenance. Per the Agreement, Guest Lodge has the right and obligation to operate the lodge and must remit 10% of all gross sales to the National Park Service. Evaluate the proper accounting and framework for this contract-is it a service concession arrangement? How does this impact your evaluation of whether the contract is a lease or how revenue should be recognized? Consider by analogy any public company filings