Luckert NV decided to cancel an existing property lease in one of its divisions, as its operations

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Luckert NV decided to cancel an existing property lease in one of its divisions, as its operations in this area were no longer profitable. Unfortunately, Luckert has a non-cancelable lease and cannot sublease the property. The present value of future lease payments under the lease is €2,000,000. The penalty to break the lease is €1,450,000. Prepare the journal entry to record this cancelation.
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Intermediate Accounting IFRS

ISBN: 978-1119372936

3rd edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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