c$.$ Accumulated Depreciation: The company has only one plant asset $($equipment$)$

asset had cost $$72,000,$ had an estimated life of seven years, and is expected to be valued at $16000,$ and at the end of seven years. The company uses straight$-$line depreciation method to calculate its depreciation method to calculate its depreciation.

Step $1$: Determine what the current account balance equals.

Step $2$: Determine what the current account balance should equal.

Step $3$: Record the December $31$ adjusting entry to get from step $1$ to step $2.$