CFR SEMINAR 6 LEASING 1 (1) Boycott is a large, multi-national entity with approximately 30 billion annual tumover. Boycott entered into a contract to lease one floor of an office building in London for an annual lease rental of 30,000. The lease period is 4 years. (2) On the same date, Boycott leased 400 Surface Pro laptops for its employees. The annual lease rental for each laptop is 500. The retail price for each laptop is 1,300. The lease period for each laptop is 4 years. (3) In addition to the above contracts, Boycott entered into a contract with Smith which requires Smith to transport a specified quantity of goods by using a specified type of vehicle in accordance with a stated timetable for a period of five years. The timetable and quantity of goods specified are equivalent to Boycott having the use of 10 vehicles for four years. Smith supplies the vehicles, driver and engine as part of the contract. The contract states the nature and quantity of the goods to be transported (and the type of vehicle to be used to transport the goods. Smith has a large pool of similar vehicles that can be used to fulfil the requirements of the contract. Similarly, Smith can choose to use any one of a number of vehicles to fulfil each of Boycott's requests, and vehicle could be used to transport not only Boycott's goods, but also the goods of other customers. The vehicles are stored at Smith's premises when not being used to transport goods. Required Explain how the above contracts should be accounted for in the books of Boycott