Straight-line depreciation method (Learning Objective 3) 5–10 min.

Equipment was bought for $66,000 on January 1, 2013. Freight charges were $4,800 and installation cost $6,000. It is estimated that the equipment will have a $14,000 residual value at the end of 5 years. What is the amount of accumulated depreciation on December 31, 2014, if the straight-line method of depreciation is used?

AppendixLO1