Phoenix Agency leases office space for $7,400 per month. On January 3, Phoenix incurs $51,600 to improve the leased office space. These improvements are expected to yield benefits for 6 years. Phoenix has 4 years remaining on its lease. Compute the amount of expense that should be recorded the first year related to the improvements.

The advantage of administering personality tests on employees is that it will allow the employer to know the mindset and personality of the employee. this will allow the employer to at least have an idea as to how the employee works and how his attitude in the workplace. the disadvantage is that it may make the employee a little anxious as to whether he would meet the personality requirements of the employer and whether he would be able to retain the job or not.