The ARO is initially set up as in Example 1. Effective May 1, 2015, management concludes that the first option period needs to be recognized. To do this, unlock the lease, check the Recognize box on the first renewal option, and click Save Lease. Choose Revision for the change type, and set the Revision Booking Date to May 1, 2015. Click OK, and EZLease reports that the ARO has been extended along with the lease life. The new Net ARO is 5,587.02.