SC started selling movie theatres a couple of years ago. Each theatre's contribution to long-run operating cash flow is assessed and, if the value of the real estate is greater than the present value of future theatre operating profits, the theatre is sold. In the past, revenue from these sales has been relatively minor, but this year 25% of net income (i.e., $6 million) came from the sale of theatres. Since these sales are considered an ongoing part of the company's operations, proceeds from the sale of theatres are recorded as revenue in the income statement.

On May 31, 2020, SC and an unrelated company, Odyssey Inc. (Odyssey), formed a partnership, Phantom. Odyssey contributed $40 million in cash. SC contributed the assets of its TV production company, which had a net book value of $65 million. The $90 million value assigned to SC's contribution may be adjusted if the net income of Phantom earned between July 1, 2020, and June 30, 2021, does not meet expectations. SC has recorded a gain of $25 million. The partnership agreement states that SC is permitted to withdraw the $40 million for its own use, and it has done so. As a result, Odyssey has a 45% interest in the partnership and SC has the remaining 55% interest.

(PLEASE IDENTIFY THE ISSUES AND SUMMARY OF HOW TO SOLVE IT)