At the beginning of the second year of an operating lease with a term of four years, the lessee invested $300,000 in a leasehold improvement which has an estimated service life of 10 years. What is the effect of this investment on the lessee's income for the second year of the lease term?

		a. recognize $100,000 amortization (depreciation) of leasehold
		b. recognize $30,000 of leasehold (expense)
		c. capitalize $300,000 into a leasehold asset but recognize no expense
		d. increase rent expense $100,000
		e. increase rent expense $30,000