B is corrent. The requirement is to identify how leasehold improvement costs should be treated. Leasehold improvements should be depreciated over the remaining useful life of the leasehold improvement or the remaining life of the lease, whichever is shorter. Therefore, the leasehold improvement should be capitalized and depreciated over 15 years. B is corrent.
A is incorrect. Leasehold improvements should be depreciated over the remaining useful life of the leasehold improvement or the remaining life of the lease, whichever is shorter. Therefore, the leasehold improvement should be capitalized and depreciated over 15 years.
C is incorrect. Leasehold improvements should be depreciated over the remaining useful life of the leasehold improvement or the remaining life of the lease, whichever is shorter. Therefore, the leasehold improvement should be capitalized and depreciated over 15 years.
D is incorrect. Leasehold improvements should be depreciated over the remaining useful life of the leasehold improvement or the remaining life of the lease, whichever is shorter. Therefore, the leasehold improvement should be capitalized and depreciated over 15 years.
|
