A company purchases a plece of equipment on January 1.2024 , for $70.000 and the equipment has an expected service life of five yearl its residual value is estimated to be $10.000. Assuming the company uses the straight-line depreciation method; whot should be the balance in accumulated depreciation for the equipment as of December 31, 2026 three years laten? Tar Heels Unlimited began business on January 1, 2024. Duting January, the following transactions occurred: January 1 Insue comon stock in exchange for $100,000 eash. January 2 Purchase inventory on account for 535,000 . January 4 Pay an insurance company $2,400 for a one-year inaurance policy. January 10 sel1 inventory on account for $12,000. The cost of the inventory. wan $7,000, monthes January 20 pay employees $6,000 salaries for the first half of the month. January 225el1 inventory for $10,000 cash. The cost of the inventory was $6,000. January 24 Pay $15,000 to suppliers for the inventory purebased on January 2. January 26 collect $6,000 onl account fron cuntomers. January 2 in Pay $1,000 to the local utility company for January qan and olectrieley. rent. Prepald pent. and Fent Rxpense are dobited for their appropriate amountis. The following information is available on January 31,2024 : 1. One month of insurance has expired (related to January 4 purchase). 2. One-half month of interest is owed (related to January 15 borrowing). 3. Salaries owed to employees at the end of January are $6,000. The entries are posted autornatically to the trial balance