USA Allocating prepaid expenses on 445 accounting period

Nov 19, 2021
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Hi All,

My employer has asked me to change the allocation in the prepayments schedule from straight line to 445 in Nov. I haven't done this before and I am a little confused. Assuming you prepaid for something in March 2021 for a year for 12000 and you allocated your expenses from March until October on monthly basis (amount over 12 multiplied by 8 = 8000) now in Nov you are left with 4 months which equals to 4000 and you are asked to allocate the renaming amount at a 445 basis.

Do you allocate 28 days in Nov because it consist of four weeks? And Dec 28 days because it consist of four weeks as well? And in Jan 35 days as in consist of five weeks?

Thanks for replying in advance


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