Joanne rented a retail space for her restaurant. The lease term was seven years. At the beginning of the lease, Joanne spent $15,000 on improvements. Later, Joanne made another leasehold improvement for $5,000, in which $1,500 was taken in depreciation deductions. At the end of the seven-year lease, she moved to a larger retail space in the same complex. Joanne had taken $9,000 in depreciation deductions for the original $15,000 in improvements. How should Joanne handle the undepreciated part of the improvements this year?

Answer rating: 100% (QA)

Joanne needs to handle the undepreciated part of the improvements this year by considering the follo... View the full answer