Martin Company purchases a machine at the beginning of the year at a cost of $150,000. The machine is depreciated using the double-declining-balance method. The machines useful life is estimated to be 4 years with a $12,500 salvage value. The machines book value at the end of year 3 is:

• $131,250.

• $17,188.

• $18,750.

• $112,500.

• $75,000.