How should xyz account for the dividers

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Reference no: EM132912622

Problem 1: XYZ Company leased a property from Yanzon Lessors, Inc. Yanzon allowed XYZ to create dividers, shelves, wall-mounted cabinets and other renovations to the property, in order to make the place more office-like. How should XYZ account for the dividers, shelves, wall-mounted cabinets and other renovations?

a. As an expense when incurred.

b. As an intangible asset, not amortized but tested for impairment at least annually.

c. As investment in associate

d. As property, plant and equipment, depreciated using the appropriate depreciation method and useful life.

Reference no: EM132912622

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