Mohr Company purchases a machine at the beginning of the year at a cost of $40,000. The machine is depreciated using the double-declining-balance method. The machines useful life is estimated to be 5 years with a $6,000 salvage value. The machines book value at the end of year 2 is:

• $20,400.

• $11,600.

• $16,000.

• $14,400.

• $24,000.