Parker Finch and Associates purchased a generator on January 1, Year 1, for $6,300. The generator was estimated to have a five-year life and a salvage value of $600. At the beginning of Year 3, the company revised the expected life of the asset to six years and revised the salvage value to $300. Using straight-line depreciation, the depreciation expense recorded in Year 3 would
a. decrease assets and equity by $1,140.
b. decrease assets and equity by $930.
c. decrease assets and equity by $1,005.
d. decrease assets and equity by $1,500.
