The cost of a leasehold improvement is depreciated over which of the following time periods?
A) the term of the lease
B) the life of the improvement
C) a time period determined by management
D) the shorter of the physical life of the asset or the lease term

Question

Quizplus · Accepted Answer

Leasehold improvements are depreciated over the shorter of the physical life of the asset or the lease term, as they are tied to the lease agreement and may not be useful beyond the lease period.

The Cost of a Leasehold Improvement Is Depreciated Over Which