On December 31, Year 1, the Exeter Corporation had property and equipment of $1,450,000 and accumulated depreciation of $500,000. During Year 2, the company acquired an asset for $250,000 in a transaction properly classified as a capital lease. The new asset was used to replace a similar piece of equipment with a historical cost of $200,000 that had been sold for $20,000, resulting in a gain of $10,000. The net book value of all of Exeter's equipment at December 31, Year 2 was $850,000. What was the amount of depreciation expense used in Exeter's Statement of Cash Flows, prepared using the indirect method, to reconcile net income to cash flows from operations? a. $340,000 b. $160,000 C. $350,000 d. $150,000