Problem:
Lisa's Boutique is renting prime store space at the Regional Mall and just signed a five-year lease effective January 1 of the current year with the following terms:
Refundable security deposit $1,500
Monthly lease payments $3,000
Lease bonus due at signing $18,000
Lisa has had to make significant renovations to the store prior to moving in. The renovations cost $50,000 and have a useful life of 8 years. Lisa's Boutique will record occupancy expense for the current year ended December 31 of: