Martin Company purchases a machine at the beginning of the year at a cost of $130,000. The machine is depreciated using the double-declining-balance method. The machines useful life is estimated to be 4 years with a $10,800 salvage value. The machines book value at the end of year 3 is:

Multiple Choice

$97,500.

$113,750.

$65,000.

$14,888.

$16,250.