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 machines 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:

• $13,200.

• $8,800.

• $22,000.

• $20,200.

• $4,400.