Oregon Company is in the process of preparing its financial statements for 2023. Assume that no entries for any depreciation or accounting changes have been recorded in 2023. The following information related to depreciation of fixed assets is provided to you: Oregon purchased equipment on January 2, 2020, for $75,000. At that time, the equipment had an estimated useful life of 8 years with a $5,000 salvage value. The equipment is depreciated on a straight-line basis. On January 2, 2023, as a result of additional information, the company determined that the equipment has a remaining useful life of 10 years with a $3,000 salvage value. Following all appropriate adjusting/correcting journal entries, the 2023 depreciation expense for the equipment will be: Select one:

a. $4,875

b. $5,450

c. $4,575

d. $6,375

e. $9,875