What is the proper accounting treatment to record improvements to leased property for a lessee?
A) Expense in the year in which expenses are incurred and increase basis of asset.
B) Capitalize and depreciate over the greater of the life of the improvement or lease term.
C) Expense in the year in which expenses are incurred.
D) Capitalize and depreciate over the lesser of the life of the improvement or lease term.
Correct Answer:
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