Toll Road Operator RoadCo. is a private company engaged in the business of building (or rebuilding), operating, and maintaining toll roads. RoadCo has entered into a 40-year contract with the State of California to rebuild, operate, and maintain Highway 500. The contract gives RoadCo. the right to collect tolls from vehicles traveling on Highway 500 throughout the contract term. RoadCo expects to incur $25 million in road rebuilding costs over the first year of the contract, then annually expects to incur $2 million in maintenance costs. Per the Agreement, RoadCo must remit 5% of all tolls collected to the State of California. Evaluate the proper accounting and framework for this contract. Consider: Is this contract a lease? How should revenue be recognized? How should RoadCo. account for its initial investment? Additional sources to consider include: accounting firm guidebooks and public company filings.