Drago Company Purchased Equipment on January 1, 2010, at a Total

Drago Company purchased equipment on January 1, 2010, at a total invoice cost of $400,000.The equipment has an estimated residual value of $10,000 and an estimated useful life of 5 years.What is the amount of accumulated depreciation at December 31, 2011, if the straight-line method of depreciation is used?

A) $80,000
B) $160,000
C) $78,000
D) $156,000