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

A. $4,000.
B. $20,000.
C. $12,000.
D. $8,000.
E. $16,000.


Answer: E

Business

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