TX signed a 5-year lease on a tract of vacant land owned by UT. TX immediately constructed a metal building on the land at a cost of $120,000 (estimated life 10 years and a 20 percent residual value). There was no lease provision for removal of the building by TX. Assuming straight-line amortization, the annual amortization expense recorded by TX would be:

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The Answer of TX signed a 5-year lease on a tract of vacant land owned by UT. TX immediately constructed a metal building on the land at a cost of $120,000 (estimated life 10 years and a 20 percent residual value). There was no lease provision for removal of the building by TX. Assuming straight-line amortization, the annual amortization expense recorded by TX would be:

TX Signed a 5-Year Lease on a Tract of Vacant