Lone Star Sales & Service acquired a new machine that cost $42,000 in early 2013. The machine is expected to have a five-year useful life and is estimated to have a salvage value of $7,000 at the end of its life.

Using the double-declining-balance depreciation method, what is the net book value of Lone Star Sales & Services machine at the end of the third year of its life?

$9,072.

$9,000.

$10,080.

$10,000.