Business, 25.04.2020 00:49 ICyberAngel

Starbucks, a coffee company, entered into a contract with DFW Airport to lease space near boarding areas for a sales kiosk. The contract is for a three-year period and will permit Starbucks to sell its coffee and food products to airport travelers. The contract specifies that Starbucks will be allocated 400 square feet of prime space for its kiosk near active boarding areas. The space will be selected by DFW Airport and the airport has the right to change the location of the space during the period of use. Starbucks has no objection to a change in the kiosk location due to the fact that any location selected by the airport must be near active boarding areas and the cost of moving the kiosk is minimal. At present, there are many areas in the airport that are available and that would meet the specifications for the space in the contract. Question Does this lease contract qualify as a long-term lease for accounting purposes?

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Starbucks, a coffee company, entered into a contract with DFW Airport to lease space near boarding a...