Crestfield leases office space for $7,000 per month. On January 3, the company incurs $37,000 to improve the leased office space. These improvements are expected to yield benefits for 5 years. Crestfield has 2 years remaining on its lease. What journal entry would be needed to record the expense for the first year related to the improvements?

• Debit Amortization Expense $7,400; credit Accumulated Amortization $7,400.

• Debit Depletion Expense $18,500; credit Accumulated Depletion $18,500.

• Debit Depreciation Expense $7,400; credit Accumulated Depreciation $7,400.

• Debit Depletion Expense $37,000; credit Accumulated Depletion $37,000.

• Debit Amortization Expense $18,500; credit Accumulated Amortization $18,500.