Phoenix Agency leases office space. On January 3, Phoenix incurs $78,600 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. Multiple Choice O O O O $20,700. $7,600. $13,100. $17,425. $9,825.