Crestfield leases office space for $6000 per month. On January 3, the company incurs $38,000 to improve the leased office space. These improvements are expected to yield benefits for 5 years. Crestfield has 2 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 $19,000; credit Accumulated Amortization $19,000.
B. Debit Depletion Expense $38,000; credit Accumulated Depletion $38,000.
C. Debit Depletion Expense $19,000; credit Accumulated Depletion $19,000.
D. Debit Amortization Expense $7600; credit Accumulated Amortization $7600.
E. Debit Depreciation Expense $7600; credit Accumulated Depreciation $7600.
Answer: A
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