On January 1, 2012 Eller Company purchased an asset that had cost $24,000. The asset had an 8-year useful life and an estimated salvage value of $1,000. Eller depreciates its assets on the straight-line basis. On January 1, 2016 the company spent $6,000 to improve the quality of the asset. Based on this information, the recognition of depreciation expense in 2016 would

increase total assets by $4,375.

reduce total equity by $4,375.

reduce total assets by $4,625.

increase total equity by $4,625.