Phoenix agency leases office space for 6300 per month on, Financial Accounting

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Phoenix agency leases office space for 6300 per month on

Phoenix Agency leases office space for $6,300 per month. On January 3, Phoenix incurs $94,400 to improve the leased office space. These improvements are expected to yield benefits for 10 years. Phoenix has 8 years remaining on its lease. Compute the amount of expense that should be recorded the first year related to the improvements.

a. $18,100

b. $15,740

c. $11,800

d. $6,300

e. $9,440

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