Mohr company purchases a machine at the beginning of the year at a cost of $23,000. the machine is depreciated using the double-declining-balance method. the machine's useful life is estimated to be 5 years with a $8,000 salvage value. the machine's book value at the end of year 2 is:

By double-declining method;

Depreciation expense = 2 * (1/life) * Book value at begging of the year

Year 1:

Book value = $23,000

Depreciation = 2 * (1/5) * 23000 = $9200

Year 2:

Book value = 23000-Depreciation in year 1 = 23000-9200 = $13,800

Depreciation = 2 (1/5) * 13800 = $,5,520

Book value at the end of year 2 = Book value at beginning - depreciation = 13800 - 5520 = $8,280