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Tara's Medical Services purchases a large machine. The cost of the equipment is $85,000. It has a trade-in value of $15,000 with an estimated 7-year useful life. If this is the only equipment Tara's Medical Services has, after the one year of use, the properly prepared balance sheet would list what information regarding the equipment?
a. Equipment, $85,000; Accumulated Depreciation, Equipment, $10,000
b.Equipment, $60,000
c.Equipment, $85,000; Accumulated Depreciation, Equipment, $25,000
d.Equipment, $75,000
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