Madison, Inc., purchased equipment at a cost of $84,000. The equipment has an estimated residual value of $12,000 and an estimated life of 6 years, or 10,000 hours of operation. The equipment was purchased on January 1, 2004. During the first year of operation, it was used for 1,500 hours. Refer to Madison, Inc.-Equipment. If Madison uses the straight-line method, how much is the book value of the equipment at December 31, 2005?

	a.	48,000
	b.	56,000
	c.	60,000
	d.	72,000