Minnesota Company is in the process of preparing its financial statements for 2025. Assume that no entries for any depreciation or accounting changes have been recorded in 2025. The following information related to depreciation of fixed assets is provided to you:

Minnesota purchased a machine on May 1, 2023, at a cost of $130,000. The machine has a salvage value of $10,000 and a useful life of 8 years. Minnesotas bookkeeper recorded straight-line depreciation in 2023 and 2024 but erroneously assumed a useful life of 10 years.

The entries to record the 2025 depreciation on the machine and the prior period adjustment will increase Accumulated Depreciation by:

Select one:

a. $18,000

b. $22,750

c. $21,000

d. $20,000

e. $21,667