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what is the difference between a leasehold under an operating lease contract and a l 625159

What is the difference between a leasehold (under an operating lease contract) and a leasehold improvement? Is there any difference in the accounting procedures applicable to each?

Walt Company leased a tract of land for 40 years at an agreed annual rental fee of USD 18,000. The effective date of the lease was 2009 July 1. During the last six months of 2009, Walt constructed a building on the land at a cost of USD 450,000. The building was placed in operation on 2010 January 2, at which time it was estimated to have a physical life of 50 years. Over what period should the building be depreciated? Why?

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