Yacht Inc. (Yacht) is a company based in California that manufactures yachts and exports the finished yachts to East Asia. Yacht manufactures two models; the most popular model is a 24-foot model (Affordable), and the other is a less common, highly customizable 36-foot model (Luxury). Yacht contracts Evergreen Inc. (Evergreen) to ship its products to East Asia. Evergreen has a fleet of 10 multi-use shipping vessels, each with capacity for 1,000 yachts. The terms of the shipping contracts are as follows: Affordable contract terms: o The term is five years. o MV Ling Beach, a ship in Evergreens fleet, is dedicated to shipping Yachts Affordables for the term of the contract. o Yacht determines (1) which East Asia ports receive shipments and (2) the order in which deliveries are made to the ports; Yacht instructs Evergreen accordingly. o Yacht has the option to send the ship below capacity. If the ship is below capacity, Evergreen cannot use the excess capacity to ship products of its other customers. Luxury contract terms: o The term is five years. o Evergreen is required to deliver shipments of Luxuries within five weeks of notification from Yacht that an order of Luxuries is ready for shipping. o Evergreen may choose any ship from its fleet to complete the request. o Yacht may provide 250 to 1,000 Luxuries in a single request; however, shipping requests of Luxuries generally do not exceed 500 yachts in a single request because of the lower production volume and longer manufacturing time of Luxuries. o Evergreen has the option to use excess capacity to ship products of its other customers. o After notification from Yacht that Luxuries are ready to ship, Evergreen determines when within the five-week period to ship the cars, as well as the shipping route. Yachts CFO understands that the new leasing standard has certain provisions that may affect how the company treats contracts of this nature. Required: Analyze the above and prepare a one-page report (font 12 of Times New Roman; short answers with bullet points are encouraged) addressing the impact (if any) of the new leasing standard on Yachts shipping arrangements for the following considerations: 1. Determine whether each of Yachts contracts with Evergreen for Affordable and Luxury contains an identified asset. 2. Determine whether each contract conveys the right to control the use of the identified asset to the lessee. 3. At least 3 Relevant ASC Citations ( EX: ASC 842-xx-xx-xx )