A hospital purchased a new CT scanner for $1,100,000 on July 1, 2017. The estimated useful life of this piece of equipment is 5 years with an expected 20% salvage value when the equipment reaches the end of its useful life. The hospital uses the straight line method of depreciation on all its capital purchases. What is the accumulated depreciation balance at 12/31/2018 for this piece of equipment?

Select one:

a. $330,000

b. $264,000

c. $176,000

d. $220,000