For each separate case below, follow the three-step process for adjusting the Accumulated Depreciation account at December 31.

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.

Assume no other adjusting entries are made during the year.

c. The company has only one fixed asset (equipment) that it purchased at the start of this year. That asset had cost $64,000, had an estimated life of 7 years, and is expected to be valued at $13,600 at the end of the 7 years.