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    Asset or Liability account

    We lease a ground $52M from a State Transportation. We received $28M rent credit from the City.

    Rent credit is asset account or Liability account?

    #2
    More Info Mary

    Mary, don't entirely understand the situation as you present it. As far as the State Transportation are you the lessor or the lessee? If a lessor, is the city credit a subsidy?

    Even though I don't understand it, I have this sinking feeling that you will not have assets or liabilities in any of these transactions - only income and expense...

    Regards, Ron J.

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      #3
      I think income and expense

      If we understand the post and don't read too much into it, Following Snags, thought, I would also think that it would be $52M expense as ground lease, and the $28M rent credit would either be posted as income or a credit against the $52M expense.

      Sandy

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        #4
        What if any are the terms of the rent credit? For example is it revocable or contingent upon any specific performance by the lesee

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