Martin Company purchases a machine at the beginning of the year at a cost of $60,000. The machine is depreciated using the double-declining-balance method. The machines useful life is estimated to be 4 years with a $5,000 salvage value. The machines book value at the end of year 3 is:

Multiple Choice

$30,000.

$45,000.

$52,500.

$7,500.

$6,875.