Cutter Enterprises purchased equipment for $81,000 on January 1, 2016. The equipment is expected to have a five-year life and a residual value of $7,200. Using the double-declining balance method, the book value at December 31, 2017 would be:

a. $28,260.

b. $29,160.

c. $16,200.

d. $30,360.