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 Amortization Expense $1,200; credit Accumulated Amortization $1,200.
B. Debit Depletion Expense $3,000; credit Accumulated Depletion $3,000.
C. Debit Depreciation Expense $1,200; credit Accumulated Depreciation $1,200.
D. Debit Depletion Expense $12,000; credit Accumulated Depletion $12,000.
E. Debit Amortization Expense $3,000; credit Accumulated Amortization $3,000.
E.Debit Amortization Expense... View the full answer