Kansas Enterprises purchased equipment for $80,500 on January 1, 2015. The equipment is expected to have a five-year life, with a residual value of...

Kansas Enterprises purchased equipment for $80,500 on January 1, 2015. The equipment is expected to have a five-year life, with a residual value of $7,500 at the end of five years.

Using the straight-line method, depreciation expense for 2015 would be: