Question Content Area: Newco Publishing Company purchased equipment at the beginning of 2017 for $200,000. The company decided to depreciate the equipment over an eight-year period using the straight-line method. The company estimated the equipment's residual value at $20,000. The adjustment for depreciation expense for 2017 will be:
a. Increase Depreciation Expense and decrease Equipment for $22,500.
b. Increase Depreciation Expense and increase Accumulated Depreciation for $25,000.
c. Increase Depreciation Expense and increase Accumulated Depreciation for $22,500.
d. Increase Accumulated Depreciation and decrease Equipment for $25,000.