On January 1, 2015, Lane Company made a $12,000 expenditure on a fully depreciated machine. The expenditure increased the expected life of the new machine for two years until December 31, 2016. Lane uses straight-line depreciation with no salvage value. However, Lane erroneously expensed this capital expenditure. As a result of this error, a. 2015 income is overstated by $3,000 and 2016 income is understated by $3,000. b. 2015 income is understated by $6,000 and 2016 income is overstated by $6,000. c. 2015 income is understated by $6,000 and 2016 income is overstated by $3,000. d. 2015 income is understated by $6,000 and 2015 income is correctly stated