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During January Year 1, Cabrera Co. incurred leasehold improvements of $210,000 to improve their leased property. The estimated useful life of the improvements is twelve

During January Year 1, Cabrera Co. incurred leasehold improvements of $210,000 to improve their leased property. The estimated useful life of the improvements is twelve years. The remaining term of the lease is seven years, with an option to renew for an additional four years. However, Cabrera has not reached a decision with regard to the renewal option. In Cabrera's December 31, Year 1, balance sheet, what should be the net carrying amount of landscaping costs?

  • A.

    $192,500

  • B.

    $180,000

  • C.

    $0

  • D.

    $190,910

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