Mohr Company Purchases a Machine at the Beginning of the Year

Multiple Choice

Mohr Company purchases a machine at the beginning of the year at a cost of $24,000.The machine is depreciated using the double-declining-balance method.The machine's useful life is estimated to be 5 years with a $4,000 salvage value.The machine's book value at the end of year 2 is:

A) $12,000.
B) $7,200.
C) $9,600.
D) $8,640.
E) $14,400.