XYZ Company leased an office suite.The lease term was five years.XYZ spent $5,000 to have the space divided into office cubicles before taking possession of the property.At the end of the five-year lease period, XYZ moved to another location.XYZ had taken $700 of depreciation deductions for the leasehold improvements when they moved.What happens to the remaining $4,300 of leasehold improvements?

Select one:

a. XYZ should deduct the $4,300 as a loss on abandonment in the year they leave the property.

b. XYZ should add the remaining $4,300 in depreciation to any improvements made to their new location and continue to depreciate the old improvements with the new improvements.

c. XYZ will never be able to deduct the $4,300.

d. XYZ should continue to depreciate the $4,300 over the next ten years.