An entity has an old building which requires frequent repairs and constant maintenance. At the beginning of 2020, the situation was as follows: Building cost $ 200,000 Accumulated depreciation building $ 150,000 Estimated remaining useful life 10 years Estimated remaining economic life 15 years Estimated residual value at end of useful life $5,000 Estimated residual value at end of economic life $1,000 Jasper uses the straight-line method for calculating depreciation expense. A small room was built on the back of the building at a cost of $12,000. The room was completed on June 30, and was used as office space commencing July 2, 2020. What is the impact of this expenditure on income before taxes for 2020? Income will decrease by $632 Income will decrease by $400 Income will decrease by $1,200 Income will decrease by $12,000