[Mamabear]

Eminent Domain (government taking property and paying us for it)–If they are allowing us to stay on the land rent free for 2 years before they take over the property, can we recognize the full gain at the time we are paid or do we need to recognize it over the next two years?

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[M.O.D.]

They are paying you first and letting you stay on now their land rent free for 2 years after the transaction?

The free rent is a separate transaction.

I would recognize the gain when you receive the cash.

BA Mathematics, UC Berkeley
Certificates in CPA and EA preparation, College of San Mateo
CMA I 420, II 470
FAR 91, AUD Feb 2015 (Gleim self-study)

[Mamabear]

Yep. I'm trying to find something in the codification to support that stance.

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[Author]

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