Question
Case 1: Louisiana Company began an operating lease arrangement with Delaware Industries, which was slated to begin on January 1, at monthly lease payments of
Case 1:Louisiana Company began an operating lease arrangement with Delaware Industries, which was slated to begin on January 1, at monthly lease payments of $10,000. However, Delawares negligence prevented Louisiana from moving in on timesince it failed to clean up the place adequately enough to earn a Certificate of Occupancy from the township. Thus, on January 1, Louisiana spent $5,000 for leasehold improvements, which enabled them to obtain the needed Certificate of Occupancy on April 1. In any event, Louisiana paid Delaware all the required $30,000 lease payments and has decided not to pursue legal action for the un-ready building. However, can Louisiana defer the $30,000 January-March lease payments over the remaining 33 months of the lease contract?
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