Phoenix Agency Leases Office Space

Please help me with the calculation? 3

Monterey rents an office for 7,000 a month. On January 3, Monte Ray pledged $ 75,000 to renovate his rented office. This improvement is expected to pay off in 8 years. Ray still has 6 years' rent. Calculate the amount of expenses that can be recorded in the first year of repair.

19,500.

7,000

12,500.

$ 9,375.

16,375

Expenses for rent increase can be waived during the period.

The remaining term of the lease or

Increased expected life expectancy.

In that case, $ 75,000 will be paid over 6 years, or $ 12,500 per year.