Martin Company purchases a machine at the beginning of the year at a cost of $67,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 5 years with a $4,000 salvage value. The book value of the machine at the end of year 5 is:

Multiple Choice

• $12,600.
• $63,000.
• $26,800.
• $4,000.
• $0.

Mohr Company purchases a machine at the beginning of the year at a cost of $29,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 5 years with a $7,000 salvage value. The book value of the machine at the end of year 2 is:

• $4,400.
• $8,800.
• $13,200.
• $20,200.
• $22,000.