On April 2, 2014, Victor, Inc. acquired a new piece of filtering equipment. The cost of the equipment was $160,000 with a residual value of $20,000 at the end of its estimated useful life time of 4 years.

Refer to the information above. Assume that in its financial statements, Victor uses straight-line depreciation and rounds depreciation for fractional years to the nearest whole month. Depreciation recognized on this equipment in 2014 and 2015 will be:

Select one:

a.$26,250 in 2014 and $35,000 in 2015.

b.$23,333 in 2014 and $35,000 in 2015.

c.$40,000 in 2014 and $30,000 in 2015.

d.$20,000 in 2014 and $35,000 in 2015.