On January 1, Year 1, Ballard company purchased a machine for $50,000. On January 1, Year 2, the company spent $18,000 to improve its quality. The machine had a $11,600 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. $19,200
B. $31,600
C. $10,000
D. $20,000
Answer: B
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