On 1/1/20x4, a company purchased a new equipment for $60,000. It expects to use the equipment for 10 years (salvage value = $5,000). Under the straight-line method, depreciation expense for 20x8 would be:

$ 5,500

$ 6,000

$ 5,000

$ 4,500

From the information in problem 14, the balance in accumulated depreciation on 12/31/20x7 would be:

$ 24,000

$ 16,500

$ 5,500

$ 22,000