A company paid sales price of $200,000 to purchase equipment and $10,000 to have the equipment delivered to and installed in the company's production facilities on January 1, 2014. The sale tax for the purchase was $15k and $10k of maintenance expenses were incurred during the first year of operation. The estimated residual value of the equipment is $5,000. The equipment is expected to be used a total of 20,000 hours throughout its estimated useful life of five years. The company has a December 31, 2014 year-end and had used the equipment a total of 6,000 hours during 2014. Using the units- of- production method, what amount of depreciation expense would the company report for this equipment in the income statement prepared for the year-ended December 31, 2014?

If a company capitalizes costs that should have been expensed, how is its income statement for the current period impacted? A. $66,000

B. $69,000

C. $58,500

D. $72,000