If a company pays $42,000 for breaking their office space rental lease, can it record the $42,000 as prepaid expenses and amortize it over a period of time?If it can, over what period can it amortize the lease breakage cost?
How is this a prepaid expense? I also would expense immediately as deferring costs and amortizing is used when you are benefiting over a period of time. Not the case here - expense immediately.
Thanks Bklyn boy!I agree that it is not something that normally can be amortized over a period of time. Just wanted to see if there was some way to spread it over a period of time.
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