Holt Co. discovered that in the prior year, it failed to report $40,000 of depreciation related to a newly constructed building. The depreciation was computed correctly for tax purposes. The tax rate for the current year was 20 percent. How should Holt report the correction of error in the current year? As an increase in accumulated depreciation of $32,000. O As an increase in accumulated depreciation of $40,000. O As an increase in depreciation expense of $32,000. O As an increase of depreciation expense of $40,000.

Holt Co. discovered that in the prior year, it failed to report $40,000 of depreciation related to a newly constructed building. The depreciation was computed correctly for tax purposes. The tax rate for the current year was 20 percent. How should Holt report the correction of error in the current year? As an increase in accumulated depreciation of $32,000 As an increase in accumulated depreciation of $40,000 As an increase in depreciation expense of $32,000. As an increase of depreciation expense of $40,000