LO.2 On January 1, 2005, Jim leased a building to be used in his business as an office building. The lease will terminate on December 31, 2012. On February 2, 2006, Jim made a capital improvement to the exterior of the building. The cost of the leasehold improvement to Jim was $80,000. Jim has no legal rights in the capital improvement after the termination of the lease. Determine Jim’s loss in 2012, if any, with respect to the leasehold improvement as a result of the termination of the lease.