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How to account for tenant improvements in purchase accounting?

For example, if a company was acquired while there was still an amount sitting in deferred rent being amortized every month, what would be the impact of purchase accounting? Does the liability amount get "fair valued"?

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Stephen Turk
Title: Principal
Company: Stephen Turk, CPA
(Principal, Stephen Turk, CPA) |

Justin:
The unamortized deferred rent does not have a fair value. However, an intangible asset or liability may be recognized in a business combination related to an operating lease whose terms are favorable or unfavorable relative to the market terms of similar leases. (see ASC 805-20-25-12)

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