Your company, RACA , is considering getting office space for its expanding public accounting business ImpressYourClinets INC (IYC), offers multiyear licenses to use on luxury office space in the heart of the Chicago Business District. The luxury licenses to customers including a 5 year licenses, or for a 7 year, life of the office space, license. Customers who sign agreements have the right to use a specified suite of office spaces in the building for the dates specified in the license agreement. IYC also offers customers with more limited budgets the option to license suites in 3 month terms. Payment for the suite license is due in full annually at license start date and every year after for multi-year licensees and at the beginning of each 3 month term for the shorter duration licenses. To help maintain and keep offices clean, Pristine Offices Corp (a third party) will provide premium maintenance services to be billed separately license holders on a monthly basis should RACA accept the deal, they could contract via Pristine, or handle maintenance on their own. Your manager has asked you to evaluate two scenarios that RACA is considering: 1. A 5-year luxury suite license 2. A license for 3 months. You are asked to write an Accounting Issues Memo to address whether the office licenses in these two scenarios are considered a lease for RACA. You are NOT required to determine the type of lease (e.g. operating vs. finance lease), but rather whether the license contract contains a lease. You should assume that the new lease rules (required for years ending after December 15, 2018) are in place. You should follow the standard memo format. Your memo should be no more than 5 pages long, using 12-point Times New Roman font, one-inch margin on all sides, double spacing in the text and single spacing for any sections from the codification. Including cites and guidance from the Codification in your memo are important. Your conclusion should include a summary of the key factors you considered in drawing your conclusions.