2020/01/01, The Hien company leased an office building under a 5-year operating lease from the Ahn corporation.

The annual rental payments are $60,000 on 2020/01/01, the inception of the lease, and $70,000 of 2020 & 2021. The Hien company made upgrade construction for interior to the building costing $50,000 before occupying the building.

The useful life of the building and the upgrade is 30 years with no residual value.

Journal entry 2020/01/01 and 2020/12/31