On April 2, 2014, Victor, Inc. acquired a new piece of filtering equipment. The cost of the equipment was $160,000 with a residual value of $20,000 at the end of its estimated useful life time of 4 years.

Refer to the information above. If Victor uses straight-line depreciation with the half-year convention, the book value of the equipment at December 31, 2015 will be:

Select one:

a.$105,000.

b.$107,500.

c.$106,667.

d.$90,000.