On January 2, 2011, Ral Co. leased land and building from an unrelated lessor for a ten-year term. The lease has a renewal option for an additional ten years, but Ral has not reached a decision with regard to the renewal option. In early January of 2011, Ral completed the following improvements to the property:

Description Estimated life Cost Sales office 10 years $47,000 Warehouse 25 years 75,000 Parking lot 15 years 18,000 Amortization of leasehold improvements for 2011 should be

a. $ 7,000

b. $ 8,900

c. $12,200

d. $14,000