Base Rent Abatement in Lease Accounting
When customer get into a new lease, the first month of the rent is free (rent abatement).
For Example: A lease starts in 01-Jan-2026 of amount $10,000 and end on 31-Dec-2029. As per the agreement, the first month is rent free so the payment of $10,000 will start from 01-Feb-2026 till 31-Dec-2029 (35 payments). But, for the Jan-2026, the lease should show expense of $10,000.
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