On January 1, 2020, Lunsford Equipment Company purchased a new security system for $130,000. The company plans to use the system for five years after which it estimates that the system can be sold for $6,500. What is the book value of the equipment on December 31, 2021 if Lunsford uses the straight-line method of depreciation?

Group of answer choices

$80,600

$49,400

$105,300

$74,100