At the beginning of 2012, Mazzaro Company acquired equipment costing $136,200. It was estimated that this equipment would have a useful life of 6 years and a salvage value of $13,620 at that time. The straight-line method of depreciation was considered the most appropriate to use with this type of equipment. Depreciation is to be recorded at the end of each year.

During 2014 (the third year of the equipment