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hi and welcome to accounting academy iamp;#39;m Fitz and this is my dog FIFO we love to help people learn more about accounting so join us on our adventures as we dive into accounting topics on todayamp;#39;s adventure we are going to be helping our friend Paul he recently modified some of his leases and has asked for help he owns a chain of veterinary clinics called Pet Vet get back here FIFO itamp;#39;s just the vet Hey Paul how are things going. Hey guys things are going great but Iamp;#39;m totally stumped on how I should account for a few changes to my leases. Well letamp;#39;s run through them see what we can do. Okay great the first clinic is doing a ton of business and we are expanding. I had a thousand square foot office and now Iamp;#39;m adding another thousand square feet. However, the new square footage is being added to the contract at the current market rate which is higher. Okay I see so the cost of the expansion is more than the origi