Hot Sun is a clothing retailer. It leases an unfinished space in a mall for $9,000 per month and the lease term is for five years. The following are expenditures preparing the space for use: framing/drywall $8,500; electrician $4,000; floors $2,500; inventory for opening day $30,000. The improvements will have a useful life of seven years. What is cost will be booked for the leasehold improvements?

		d) $17,500
		a) $15,000
		c) $54,000
		b) $24,000

Hot Sun is a clothing retailer. It leases an unfinished space in a mall for $9,000 per month and the lease term is for five years. The following are expenditures preparing the space for use: framing/drywall $8,500; electrician $4,000; floors $2,500; inventory for opening day $30,000. The improvements will have a useful life of seven years. What is the useful life used to calculate depreciation for the leasehold improvements?

		b) 7 years
		c) 15 years
		a) 5 years
		d) none they are all expenced immediately