Crestfield Leases Office Space for $7,000 Per Month

question 92

Multiple Choice

Crestfield leases office space for $7,000 per month. On January 3, the company incurs $12,000 to improve the leased office space. These improvements are expected to yield benefits for 10 years. Crestfield has 4 years remaining on its lease. What journal entry would be needed to record the expense for the first year related to the improvements?

• A) Debit Depletion Expense $3,000; credit Accumulated Depletion $3,000.
• B) Debit Depreciation Expense $1,200; credit Accumulated Depreciation $1,200.
• C) Debit Amortization Expense $1,200; credit Accumulated Amortization $1,200.
• D) Debit Amortization Expense $3,000; credit Accumulated Amortization $3,000.
• E) Debit Depletion Expense $12,000; credit Accumulated Depletion $12,000.

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The process of asking questions and evaluating a candidate for a specific role or purpose.

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The state of being removed or taken back, or a description of someone who is introverted and not engaging with others.

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The deliberate deception to secure unfair or unlawful gain, often involving financial transactions or contracts.