Accounting Treatment of License Fee


R

Rick

Is the local license fee paid by a restaurant considered an asset or an
expense?
 
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P

Paul Thomas, CPA

Rick said:
Is the local license fee paid by a restaurant
considered an asset or an expense?


If it's an annual fee, it's an expense.

If it's a one time fee, or a fee for a number of years, and it's
transferable (ie: they can sell it to someone else) then it would be an
asset to be depreciated over it's life.
 

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