Leasehold Improvement- How to record Lessor's payments..

A restaurant owner signs a lease for a new space. The lease term is 10 years with an option to renew. He spends $50,000 for remodeling. As per lease agreement, the Lessor also pays $30,000 directly to the Contractor for remodeling. Total cost of improvement is $80,000. How shoudl the Lessee book the asset in his balance sheet and also report in his tax return? Should he book $50,0000 or $80,000 as the leasehold improvement in his book? If the Leasehold Improvement is $80,000, what should be the offset credit entries.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Curious: Two different "From:" addresses for essenially the same homework problem?
--

ArtKamlet at a o l dot c o m Columbus OH K2PZH

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
wrote:

classmates.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

BeanSmart.com is a site by and for consumers of financial services and advice. We are not affiliated with any of the banks, financial services or software manufacturers discussed here. All logos and trade names are the property of their respective owners.

Tax and financial advice you come across on this site is freely given by your peers and professionals on their own time and out of the kindness of their hearts. We can guarantee neither accuracy of such advice nor its applicability for your situation. Simply put, you are fully responsible for the results of using information from this site in real life situations.