Roll-on tire service opened a new service center three decades ago. At the time the center was preparing to open, new equipment was purchased...

Roll-on tire service opened a new service center three decades ago. At the time the center was preparing to open, new equipment was purchased totaling $388,000. Residual value of the equipment was estimated to be $ 48,000 after 20 years. The company accountant has been using straight- line depreciation on the equipment.a)