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2. As the Presto Hospitality memo in this chapter illustrates, accounting issues are not always straightforward. The following questions are intended to highlight some of the many judgments and alternatives present in that memo. Considering that memo, respond to the following. Use the Presto Hospitality memo, and your own thinking, to respond. (Codification research is not necessary for this exercise.) Why is it important for Presto to determine whether the concessions agreement is a lease? What impacts could this conclusion have on Presto's accounting? a. b. Describe the steps involved in performing the analysis of which concession locations/rights are considered identified assets. C. What would have happened if Presto had concluded that the arrangement does not involve identified assets? What analysis would have been performed next? d. What value did the airport kiosk implementation guidance example contribute to Presto's evaluation of its identified assets? e. What value did the Retail Unit A implementation guidance example contribute to Presto's evaluation of its identified assets? f. The Conclusion section laid out not only the conclusion for each concession right/location, but also the ratio- nale. Summarize the rationale described for each conclusion reached. Draw a picture illustrating the following fact pattern:

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