On July 8, 20X1, your company purchases a machine for $100,000. Your firm uses the DDB method. Assets purchased between the 1st and 15th are depreciated for the entire month; assets purchased after the 15th as though acquired the following month. Management estimates the machine will last 8 years and have a salvage value of $35,000. The book value at the end of 20X1 is:

$32,000

$12,500

$68,000

$87,500