3.

On January 2, 2010, KJ Corporation acquired equipment for $260,000. The estimated life of the equipment is 5 years or 40,000 hours. The estimated residual value is $20,000. What is the balance in Accumulated Depreciation on December 31, 2011, if KJ Corporation uses the

straightminusline

method of depreciation?

A.

$53,625

B.

$51,500

C.

$49,500

D.

$96,000