Equipment Was Purchased for $68,000 on January 1, 2013

Multiple Choice

Equipment was purchased for $68,000 on January 1, 2013. Freight charges amounted to $2,800 and there was a cost of $8,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $12,000 salvage value at the end of its 5-year useful life. What is the amount of accumulated depreciation at December 31, 2014, if the straight-line method of depreciation is used?

A) $26,720.
B) $13,360.
C) $11,440.
D) $22,880.