On January 1, Year 1, Epalinges Corp. purchased a machine for $200,000. The machine was depreciated using the straight-line method over a 10 -year period with no residual value. Because of a bookkeeping error, no depreciation was recognized in Epalinges' Year 1 financial statements, resulting in a $25,000 overstatement of the book value of the machine on December 31, Year 1. The oversight was discovered during the preparation of Epalinges' Year 2 financial statements. What amount should Epalinges report for depreciation expense on the machine in the Year 2 financial statements? $18,000. $40,000. $22,000. $20,000