Mohr Company Purchases a Machine at the Beginning of the Year

question 192

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