A shareholder donated a building and the land on which it is located to Clemson Inc. The property was reliably appraised at a value of $475,000 (30% related to the land). Clemson Inc. paid transfer costs of $17,500 cash. In the donors accounting records, the original cost of the land and building is $900,000 and the accumulated depreciation of the building through the date of donation is $400,000. The building has an estimated remaining life of 15 years (no residual value). The amount of depreciation expense that the company should report in income statement at the end of the first year, assuming a full year of depreciation and use of the straight-line method, is

$22,983. $31,667. $22,167. None of the other answers is correct.