C is corrent. Leasehold improvements are properly capitalized and amortized over the remaining life of the lease, or the useful life of the improvements, whichever is shorter. Since the useful life of the walkways is only 15 years and the remaining term of the lease is 20 years, the cost should be depreciated over the 15-year period.
A is incorrect. Leasehold improvements are properly capitalized and amortized over the remaining life of the lease, or the useful life of the improvements, whichever is shorter. Since the useful life of the walkways is only 15 years and the remaining term of the lease is 20 years, the cost should be depreciated over the 15-year period.
A is incorrect. Leasehold improvements are properly capitalized and amortized over the remaining life of the lease, or the useful life of the improvements, whichever is shorter. Since the useful life of the walkways is only 15 years and the remaining term of the lease is 20 years, the cost should be depreciated over the 15-year period.
D is incorrect. Leasehold improvements are properly capitalized and amortized over the remaining life of the lease, or the useful life of the improvements, whichever is shorter. Since the useful life of the walkways is only 15 years and the remaining term of the lease is 20 years, the cost should be depreciated over the 15-year period.
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