CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

A lessee must amortize leasehold improvements over the economic life of the improvement or ______.

A. the life of the lease, whichever is shorter
B. the life of the lease, whichever is longer
C. 40 years, whichever is shorter
Correct Answer: A

A company must amortize the cost of a leasehold improvement over the useful life of the improvement or the life of the lease, whichever is shorter.

User Contributed Comments 2

User Comment
synner A lessor must amortize leashold improvements over the economics life of the improvement or the life of the lease, whichever is shorter.
2014 what is improvement ?

asset ?
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