A vehicle is purchased for $25,000 and its price is expected to drop to $4,000 after 20 years of service. Using the 150% declining balance method, what is the book value of this vehicle after 7 years of use? Do not switch to straight line depreciation.

a.

$11,957

b.

$5,243

c.

$14,485

d.

$10,515

e.

$8,014