Equipment was purchased for 300,000. Freight charges amounted to 14,000 and there was a cost of 40,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a 60,000 residual value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be?

Select one alternative:

• 70,800
• 58,800
• 48,000
• 49,200