Star Co. leases a building to be used for office space to support its expanding business. The six- year nonrenewable lease will expire on December 31, year 8. In January, year 5, Star made leasehold improvements of $ 72,000. The estimated useful life of the improvements is 10 years. Star uses the straight-line method of amortization. What amount of amortization should Star report on its June 30, year 5 income statement?
a. $ 3,600
b. $ 7,200
c. $ 9,000
d. $ 18,000