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?
Rent credit is asset account or Liability account?
-
-
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. -
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.
SandyComment
-
What if any are the terms of the rent credit? For example is it revocable or contingent upon any specific performance by the leseeComment
Comment