question 7

Phoenix Agency leases office space for $7,000 per month, On January 3, Phoenix incurs $75,000 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. Multiple Choice $7,000. $16,375. $9,375. $19,500. $12,500