Martin Company Purchases a Machine at the Beginning of the Year

question 18

Multiple Choice

Martin Company purchases a machine at the beginning of the year at a cost of $60,000.The machine is depreciated using the double-declining-balance method.The machine's useful life is estimated to be 4 years with a $5,000 salvage value.The machine's book value at the end of year 3 is:

• A)$30,000.
• B)$45,000.
• C)$52,500.
• D)$7,500.
• E)$6,875.

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