You Tell Me, Am I a Lease?

Analyze this information to determine how to account for each contract in accordance with the new leasing standard. Your answer should include the following: 1. A letter from you to the Autos CFO, John Smith, that summarizes your findings for each contract (not to exceed one page)

Hint: In your letter, separate your assessment of the two contracts into different paragraphs. Try to organize your paragraphs using the following 4 statements (IRAC method): Issue: The specific accounting problem/question in terms of the clients business Rule: The source you applied to arrive at a conclusion stated in plain language with no reference to clients business Analysis: How the rule applies to clients business situation (how rule applies to issue) Conclusion: Course of action you have selected (come to a specific conclusion; no if/then or choices)