Office LLC (a lessor) enters into a lease of a newly constructed office building. The lease term is ten years. For the first
5 years, the rent is $5,000 per month and for the second five years, the rent increases to $6,000 per month. There is
a clause in the contract that makes Office LLC responsible for any increase in property taxes that may occur. The
lessor is responsible for all repairs and office maintenance. At the commencement of the lease, another office
building with similar characteristics to the leased asset has an estimated useful life of 50 years.
Which of the following statements is correct?