Compute the amount of expense that should be recorded the first year related to the improvements.

Phoenix Agency leases office space. On January 3, Phoenix incurs $65,000 to improve the leased office space. These improvements are expected to yield benefits for 8 years. Phoenix has 5 years remaining on its lease Compute the amount of expense that should be recorded the first year related to the improvements. O $6,000 $8,125 $20,000 O $65,000 $13,000