On January 1,Year 1,Eller Company Purchased an Asset That Had

Multiple Choice

On January 1,Year 1,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,Year 5,the company spent $6,000 to improve the quality of the asset.How does the Year 5 depreciation expense impact the elements of the financial statements?

A) Increase total assets by $4,375
B) Decrease stockholders' equity by $4,375
C) Decrease total assets by $4,625
D) Increase stockholders' equity by $4,625