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ACG 3141 - Writing Assignment - LeasesImagine you are a newly hired staff member of FAU, Inc., an accounting firm located at 777 Glades Road, Boca Raton, FL 33431. Your current client is FIU, Inc., a private company located at 11200 S.W. 8th Street, Miami, FL 33199. Your client is trying to decide how to best classify and report its leases per US GAAP. Because FIU, Inc. is unfamiliar with the different types of leases per US GAAP, FIU Inc. has hired FAU, Inc. to explain accounting treatments per US GAAP. Your firm hasdelegated to you the treatment of leases, and has asked that you prepare a 4 page typed memo (not handwritten, 1.5 spacing -- not double spaced), including a works cited page (the 4thpage of your memo should be designated as the works cited page) to the client explaining (1) The standards that govern the US GAAP treatment of leases (2) The major types of lease classifications (3) The balance sheet and income statement effects under US GAAP.In addition, you are toformulate a question to ask the client that would help you determine which type of lease(s) transaction(s) it is involved in, and include that in the conclusion of your memo.