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[Music] okay now lets summarize everything that we just learned and put it to use so what is the initial right of use asset considering the facts below if im trying to determine my revenues asset ill start at my lease liability of 500 000 then my tenant improvement allowance paid by the lessor since that is a release incentive i will subtract that out my broker commission paid uh fair the lessee that is a uh initial direct cost i will add that then my first month rent paid at least inception that is a prepaid rent so i will add that to get to my ending right or start my beginning where i just use asset balance of 490 000. in the bottom right hand corner heres what the journal entry would be at least commencement you enter in your writing whose asset for 4.90 enter in your lease liability for 500 000 and sometimes i just start to plug and play from that point forward i would add in my cash for my tenant improvement allowance for 50 000 this could be cash or it can be a tenant impr
