Accounting Treatment of License Fee

Jan 23, 2007 1 Replies

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


"Rick" wrote

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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