On January 2, 2019, McNally's Extra Corporation Acquired Equipment for $120,000

On January 2, 2019, McNally's Extra Corporation acquired equipment for $120,000. The estimated life of the equipment is 5 years or 20,000 hours. The estimated residual value is $20,000. What is the balance in Accumulated Depreciation on December 31, 2020, if McNally's Extra Corporation uses the double-diminishing-balance method of depreciation?

A) $43,200
B) $23,200
C) $36,000
D) $76,800