Phoenix Agency leases office space. On January 3, Phoenix incurs $81,000 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. $21,500. $10,125. $8,000. $18,125. $13,500. Bharrat Corporation purchased 36% of Ferris Corporation for $114,000 on January 1. On October 17 of the same year, Ferris Corporation declared total cash dividends of $26,000. At year-end, Ferris Corporation reported net income of $74,000. The balance in the Bharrat's Equity Method Investments, Ferris account at December 31 should be: $114,000. $140.640. $104,640. $96.720. $131,280