Kansas Enterprises purchased equipment for $80,000 on January 1, 2021. The equipment is expected to have a ten-year service life, with a residual value of $8,550 at the end of ten years. Using the...

Kansas Enterprises purchased equipment for $80,000 on January 1, 2021. The equipment is expected to have a ten-year service life, with a residual value of $8,550 at the end of ten years.

Using the straight-line method, the book value at December 31, 2021, would be:

Multiple Choice

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  $72,000.

  
  
  
  


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  $64,305.

  
  
  
  


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  $71,450.

  
  
  
  


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  $72,855.