On January 1, 2004, ABC Company purchased equipment for $100,000. The equipment was assigned a life of 20 years and a $4,000 residual value. On January 1, 2007, ABC Company spent $34,600 to overhaul the equipment. This capital expenditure caused ABC Company to change the life of the equipment from 20 years to 28 years with a residual value at the end of the 28 years of $2,000.
Assuming ABC Company employs the double-declining balance depreciation method, calculate the book value of the equipment at December 31, 2008.
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