Mohr Company purchases a machine at the beginning of the year at a cost of $36,000. The machine is depreciated using the straight-line method. The machines useful life is estimated to be 8 years with a $5,000 salvage value. The book value of the machine at the end of year 2 is:

Multiple Choice

• $31,000.

• $28,250.

• $7,750.

• $3,875.

• $23,250.