Per ASC 842-10-15-3, A contract is or contains a lease if the contract conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. A period of time may be described in terms of the amount of use of an identified asset (for example, the number of production units that an item of equipment will be used to produce). ASC 842-10-15-4 clarifies that a contract conveys right to control if the customer has right to substantially all the economic benefits available from the asset and the customer has the right to direct the use of the asset. These two paragraphs lay out the working concept (i.e., control over an identified asset) for determining whether a contract contains a lease component. Paragraphs ASC 842-10-15-5 to ASC 842-10-15-27 flesh out this concept in more detail. Required Draw upon guidance in ASC 842-10-15-1 to ASC 842-10-15-27 to determine which components of the following contract, if any, constitutes a lease. The Contract: A contract between Customer and a freight carrier (Supplier) provides Customer with the use of 10 rail cars of a particular type for 5 years. The contract specifies the rail cars; the cars are owned by Supplier. Customer determines when, where, and which goods are to be transported using the cars. When the cars are not in use, they are kept at Customers premises. Customer can use the cars for another purpose (for example, storage) if it so chooses. However, the contract specifies that Customer cannot transport particular types of cargo (for example, explosives). If a particular car needs to be serviced or repaired, Supplier is required to substitute a car of the same type. Otherwise, and other than on default by Customer, Supplier cannot retrieve the cars during the five-year period. The contract also requires Supplier to provide an engine and a driver when requested by Customer. Supplier keeps the engines at its premises and provides instructions to the driver detailing Customers requests to transport goods. Supplier can choose to use any one of a number of engines to fulfill each of Customers requests, and one engine could be used to transport not only Customers goods, but also the goods of other customers (for example, if other customers require the transport of goods to destinations close to the destination requested by Customer and within a similar timeframe, Supplier can choose to attach up to 100 rail cars to the engine).