I own a Martial Arts School. We need to relocate the school and will need to spend $35,000 for leasehold improvements. Our Gross Income last year from memberships and testings was $50,000. The new lease is for 5 years so the improvements would be amortized over this period. How much as a percentage should I increase the membership and testing income in order to pay for the leasehold improvements. Tell me how you arrived at your answer.
Added by Juan J.
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Since the improvements will be amortized over 5 years, the annual cost would be $35,000 divided by 5, which equals $7,000 per year. Show more…
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