On January 1, 2010, Hernandez Enterprises Signed a 5-Year Lease

On January 1, 2010, Hernandez Enterprises signed a 5-year lease on office space with Carlton Inc. During the first six months of 2010, Hernandez spent $351,000 on improvements to property leased from Carlton Inc. After the improvements were completed, Hernandez began using the office space on July 1, 2010. The improvements have a remaining useful life of 10 years and a salvage value of $50,000. At the end of 2010, Hernandez will make an adjusting entry relative these leasehold improvements for which of the following amounts?

A) $30,150
B) $35,100
C) $39,000
D) $70,200
E) $78,000