Phoenix Agency leases office space for $7,500 per month. On January 3, Phoenix incurs $78,000 to improve the leased office space. These improvements are expected to yield benefits for 8 years. Phoenix has 6 years remaining on its lease. Compute the amount of expense that should be recorded the first year related to the improvements. o $20,500. o $13,000. o $7,500. o $9,750. o