Barber. Inc.. followed the practice of depreciating its building on a straight-line basis. A building was purchased in 2007 and had an estimated useful life of 20 years and a residual \alue of

$20,000. The company's depreciation expense for 2007 was $20,000 on the building. What was the original cost of the building?

a. $360,000

c. $400,000

b. $380,000

d. $420,000

(Appendix)