Base Ltd., an American company, acquired US$200,000 of capital assets on January 1, 2018 when the company was established. These assets were being amortized over 10 years on a straight-line basis, with no significant residual value expected. On January 1, 2022, Ace Inc., a Canadian company with no capital assets of its own, acquired100% of the outstanding shares of Base. US$40,000 of the acquisition differential was allocated to the capital assets, which had eight years remaining economic life on the acquisition date. On March 1, 2023, Base acquired a further $80,000 of capital assets, which had an estimated useful life of eight years from that date. Exchange rates for the period from January 1, 2018 to December 31, 2023 were: January 1, 2018 US$1.00 = CDN$1.056 January 1, 2022 US$1.00 = CDN$1.2684 Average for 2022 US$1.00 = CDN$1.2109 December 31, 2022 US$1.00 = CDN$1.2267 March 1, 2023 US$1.00 = CDN$1.2464 Average for 2023 US$1.00 = CDN$1.2096 December 31, 2023 US$1.00 = CDN$1.2335 If Base is considered to be a foreign subsidiary where its functional currency is the U.S. dollar (i.e. different than the parent's functional currency), what amount will be shown for depreciation expense on its translated Canadian dollar financial statements as at December 31, 2022? (2 marks) a. $25,358 b. $21,200 c. $20,000 d. $24,218