On January 1, 2009, Holbrook Company leased a building under a 3-year operating lease. The annual rental payments are $68,000 on January 1, 2009, the inception of the lease, and $50,000 January 1 of 2010 and 2011. Holbrook made structural modifications to the building costing $90,000 before occupying the building. The useful life of the building and the modifications is 30 years with no expected residual value.
Required:
Prepare the appropriate journal entries for Holbrook Company for 2009. Holbrook's fiscal year is the calendar year, and the company uses straight-line depreciation.

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The Answer of On January 1, 2009, Holbrook Company leased a building under a 3-year operating lease. The annual rental payments are $68,000 on January 1, 2009, the inception of the lease, and $50,000 January 1 of 2010 and 2011. Holbrook made structural modifications to the building costing $90,000 before occupying the building. The useful life of the building and the modifications is 30 years with no expected residual value.
Required:
Prepare the appropriate journal entries for Holbrook Company for 2009. Holbrook's fiscal year is the calendar year, and the company uses straight-line depreciation.

On January 1, 2009, Holbrook Company Leased a Building Under