his question is based on new lease rules that became effective for most public companies on January 1, 2019.

The Pharmacy, Inc. has leased a building and determined that the lease should be classified as a finance lease over the life of the 15-year lease. The present value of the lease payments is $900,000. The fair value of the building is $1,150,000. The governmental tax authority thinks that the building should be depreciated over 10 years because it qualifies for a special historical initiative. Monthly straight-line GAAP depreciation for the building is:

Select one:

a. $0

b. $7,500

c. $60,000

d. $5,000

e. $90,000