Fox, Inc. has one plant asset with an original cost of $940,000, a $60,000 expected residual value, and a 25-year estimated useful life. At the beginning of 2020, following 15 full years of depreciation, Fox determined that the asset will only be useful for another 4 years and decreased the expected residual value to $50,000. This change is needed to reflect advanced technology used in newer equipment currently available on the market. Fox uses only straight-line depreciation. How much will net income decrease as a result of Foxs depreciation entry for 2020?

Group of answer choices

$90,500

$75,500

$81,500

$222,500