Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik

Exercise 38

An acquired entity has a long-term operating lease for an office building used for central management. The terms of the lease are very favorable relative to current market rates.However,the lease prohibits subleasing or any other transfer of rights. In its financial statements, the acquiring firm should report the value assigned to the lease contract as
A) An intangible asset under the contractual-legal criterion.
B) A part of goodwill.
C) An intangible asset under the separability criterion.
D) A building.