7. Kate Company purchased a tractor at a cost of $120,000 on January 1, 2016. The tractor has an estimated salvage value of $20,000 and an estimated life of 8 years. If Kate uses the straight-line method, what is the book value at January 1, 2020? A) $70,000 B) $50,000 C) $82,500 anuary 1, 20202 26000- Lo D) None of the above