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vweymouth
Aug 15, 2012, 12:30 PM
Should the balance in a 401k forfeiture account be a prepaid expense?

paraclete
Aug 15, 2012, 03:28 PM
Ask yourself is this an asset? will there be a future realisation of this asset?

NariahHolt
Aug 17, 2012, 04:02 PM
Yes. I have a similar situation but our tax accountants don't want a gl account for forfeitures. They say we should make a j/e offsetting the 401k expense account. Seems like this would work too? Or is one method better over the other?

NariahHolt
Aug 17, 2012, 04:13 PM
I would think it better to consider it a prepaid expense and expense in proper period but I suppose may be missing something