Company R is an upscale retailer that offers high-end fashion clothes and excellent customer service to its affluent customers. Co. R normally operates as an anchor tenant in shopping malls. Since they attract a lot of people to the malls that they are located in, landlords usually give them a favorable lease and benefit. Co. R is considering moving to Z town. A landlord there put together a package to try to attempt Co. R to come to that mall:

_ Co . R receives title to the shell of a building and land from the landlord. FV is $15 million

Co. R receives $25 million from landlord to partially offset the remaining build out cost of $30 million

Co. R isnt responsible to pay rent

Since no rent payments, formal lease doesnt exist. there is an operating agreement that specifies that Co. R will operate under the location as a typical Co. R, under Co. R name with minimum Sq. footage and minimum store hours for a period of 20 years

Co. R retains title to the building after the operating agreement expires

If Co. R breaks operating agreement, landlord has an option to repurchase Co. R real estate interest for FMV less the unamortized cost of $25 million cash incentive

They agreed

HOW SHOULD CO. R ACCOUNT FOR THE PROPOSED AGREEMENT WITH LANDLORD???

PLEASE EXPLAIN !!!!!!!!!!