Donald Tromp St Elons= a successful |llirotham City landlord, has put together an attractive package designed to entice Fashions R Us to locate its Gotham City store it Tromp Jit- Sons=s nevir midtown mall. The terms of the deal are as follows: It Fashions R Us receives title to the shell of a building and land 'om Tromp 3:: Sons- The fair value of this property is $15 million. It Fashions R Us receives $25 million om Tromp 3: Sons to partially offset the remaining buildout costs of 33!} million- - Fashions R Us is not responsible for paying rent. IF As there are no rent payments, a formal lease does not exist. There is= however, an operating agreement that specifies (among other things} that Fashions R Us will operate the location as a typical Fashions R Us store= under the Fashions R Us name with minimum square footage and minimum store hours for a period of Eli] years- Ir Fashions R Us retains title to the building after the operating agreement expires. It If Fashions R Us brealcs the operating agreement, Tromp 3: Sons has an option to repurchase Fashions Ft Usls real estate interest for fair market value less the unarnortiaed cost of the $25 million cash incentive- After examining the terms of the agreement oEered by Tromp Er- lions= Fashions F'- U management has agreed to locate its new Gotham City store in Tromp 3r- Sons's mid town mall- Required: Ir Hovv should Fashions R- Us account for the proposed agreement with Donald Tromp 3:: Sons