Crestfield Leases Office Space

Crestfield leases office space.On January 3,the company incurs $12,000 to improve the leased office space.These improvements are expected to yield benefits for 10 years.Crestfield has 4 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 $1,200; credit Accumulated Amortization-Leasehold Improvements $1,200.
B) Debit Depletion Expense $3,000; credit Accumulated Depletion $3,000.
C) Debit Depreciation Expense $1,200; credit Accumulated Depreciation $1,200.
D) Debit Depletion Expense $12,000; credit Accumulated Depletion $12,000.
E) Debit Amortization Expense $3,000; credit Accumulated Amortization-Leasehold Improvements $3,000.