Multiple Choice Question 104 Equipment was purchased for $120,000. Freight charges amounted to $5,600 and there was a cost of $16,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $24,000 residual value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be $19,200 $28,320 $19,680. $23,520