Kansas Enterprises purchased equipment for $81,000 on January 1, 2021. The equipment is expected to have a ten-year service life, with a residual value of $7,500 at the end of ten years.

Using the straight-line method, depreciation expense for 2021 would be:

Multiple Choice

• $7,350.
• $8,850.
• $16,200.
• $8,100.