On January 1, 2012 Eller Company purchased an asset that had cost $24,000. The a

On January 1, 2012 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, 2016 the company spent $6,000 to improve the quality of the asset. Based on this information, the recognition of depreciation expense in 2016 would:
a. increase total assets by $4,375.
b. reduce total equity by $4,375.
c. reduce total assets by $4,625.
d. increase total equity by $4,625.

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