18. Panda Express leases office space. On January 3, Panda incurs $65,000 to improve the leased office space. These improvements are expected to yield benefits for 8 years. Panda has 4 years remaining on its lease. Compute the amount of expense that should be recorded the first year related to the improvements.

Select one:

a. $13,000

b. $65,000

c. $16,250

d. $8,125

e. $0 since the improvements are for the benefit of the owner of the property