On January 1, 2006, Corporation acquired equipment for $200,000. The estimated life of the equipment is 10 years or 35,000 hours. The estimated residual value is $40,000. What is the book value of the equipment on December 31, 2007, if Corporation uses the double-declining-balance method of depreciation?

$112,500

$72,000

$128,000

$32,000