Klein, Inc. purchased a piece of manufacturing equipment for $45,000 on January 1, 2020. Using the straight-line method of depreciation, Klein began to depreciate the asset over an estimated useful life of 5 years and with an estimated salvage value of $5,000. At the end of the second year, Klein determined that the equipment actually had four more years remaining (for a total useful life of six years) but that its estimated salvage value would remain at $5,000. Based on this new information, depreciation expense during the third year would be

a $ 5,500

b $ 6,750

c $ 6,000

d $ 0.

Based on the facts in the previous question, the net book value of the equipment at the end of the third year would be

a $23,000

b $18,000

c $23,500

d $23,250