Real Estate Accounting Made Easy by Obioma A. Ebisike

Author:Obioma A. Ebisike
Language: eng
Format: epub, pdf
ISBN: 9781119626787
Publisher: Wiley
Published: 2019-11-19T00:00:00+00:00

Example

To illustrate the accounting for a loss on a lessor assumption of the lessee's lease with a third party, let us assume that the lessee signs a 10-year lease with the lessor and the lessor agreed to assume the lessee's lease with a third party that has three years remaining. Also assume these other salient terms of the deal:

Annual lease payment on the old lease assumed by lessor is $120,000.

Annual lease payment by the lessee on the new lease is $250,000.

Lessor's estimated annual sublease revenue on the old premises is $110,000.

Lessor's estimated total loss from assuming lease is $60,000.

Lessee's estimate of the incentive is $50,000.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.