6.

Kansas Enterprises purchased equipment for $78,500 on January 1, 2024. The equipment is expected to have a five-year service life, with a residual value of $9,000 at the end of five years. Using the straight-line method, depreciation expense for 2025 and the book value at December 31, 2025, would be:

Multiple Choice

• $13,900 and $41,700, respectively.

• $15,700 and $38,100, respectively.

• $15,700 and $47,100, respectively.

• $13,900 and $50,700, respectively.