Red Corporation purchased equipment at a cost of $80,000. The equipment has an estimated residual value of $10,000 and an estimated useful life of 7 years or 12,500 hours of operation. The equipment was purchased on May 1, 2017 and was used 1,900 hours in 2018 and 2,600 hours in 2019.

If Red Corporation uses the straight line method of depreciation, determine the accumulated depreciation on the equipment as of December 31, 2018:

	A.	$6,667
	B.	$10,000
	C.	$16,667
	D.	$20,000
	E.	$22,857