On July 1, 2020, Bosnia Corp. purchased a new piece of equipment for $300,000. The equipment has an estimated useful life of 5 years and an estimated residual value of $25,000. Bosnia uses the calendar year as its fiscal year, and records depreciation to the nearest month. < I 8. 9. If Bosnia expensed the total cost of the equipment at the time of purchase, what was the effect on 2020 and 2021 income before taxes, assuming Bosnia uses straight-line depreciation? a. $245,000 understated and $55,000 overstated < b. $270,000 understated and $30,000 overstated < c. $272,500 understated and $55,000 overstated < d. $300,000 understated and $30,000 overstated < If, at the beginning of 2022, Bosnia decides the equipment still has five more years of life beyond December 31, 2021, with the same residual value, what would be the straight-line depreciation for 2022? (Assume straight-line used in all years.) < a. $30,000 b. $32,083 c. $38,500 d. $55,000