Erickson, Inc. purchased printing press at a cost of $500,000 on January 1, 2020. The equipment has an estimated residual value of $15,000 and an estimated life of 8 years.

If Erickson, Inc. uses the straight-line method, what is the book value at December 31, 2024 (end of fifth year)?

Group of answer choices

$485,000

$196,875

$262,500

$181,875