Jimmy Company leased a delivery van for payments of $6000 per year for three years. In addition, Jimmy Company also paid $1300 for new larger windows in the van and spent $4400 for special storage racks for the van. Leasehold Improvements equal:

Question

Quizplus · Accepted Answer

Leasehold improvements are enhancements made to leased property. The $1300 for new windows and $4400 for storage racks are improvements to the van, totaling $5700.

Jimmy Company Leased a Delivery Van for Payments of $6000