On January 1, Year 1, Ballard Company Purchased a Machine

Multiple Choice

On January 1, Year 1, Ballard company purchased a machine for $44,000. On January 1, Year 2, the company spent $15,000 to improve its quality. The machine had a $9,200 salvage value and a 6-year life, which are unchanged. Ballard uses the straight-line method. What is the book value of the machine on December 31, Year 4?

A) $26,800
B) $17,600
C) $8,800
D) $23,800