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Landlord gives lessee $20,000 to assist in Leasehold improvements

The lessee of commercial space (taxpayer) received $20,000.00 from the lessor (Landlord) as a renovation credit to be used towards leasehold improvements.

How would this entry look on the lessee’s (taxpayers) books?

Dt Cash $20,000.00
Ct ???

Thanks kindly

"…a cash inducement paid by a landlord to a tenant in order to secure a lease is generally treated as taxable business income for the tenant and amortized over the term of the lease. If, however, the cash payment inducement is used by the tenant to improve the premises, an election can be made by the tenant, whereby the elected amount can be offset against the cost of the improvement. This would reduce or eliminate the income inclusion resulting from the cash inducement. "

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Another good article:

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