Garrison Corporation purchased a depreciable asset for $320,000 on January 1, 2015. The estimated salvage value is $32,000, and the estimated total useful life is 9 years. The straight-line method is used for depreciation. On January 1, 2017, Garrison changed its estimates to a useful life of 5 years from its original purchase date with a salvage value of $40,000. What is the 2018 depreciation expense?

Select one:

a.

$42,000

b.

$72,000

c.

$112,000

d.

$126,000

e.

$168,000