Part A: Mohr Company purchases a machine at the beginning of the year at a cost of $41,000. The machine is depreciated using the straight-line method. The machines useful life is estimated to be 8 years with a $3,000 salvage value. The book value of the machine at the end of year 2 is:

A) $38,000

B) $9,500

C) $28,500

D) $31,500

E) $4,750

Part B: Mohr Company purchases a machine at the beginning of the year at a cost of $32,000. The machine is depreciated using the straight-line method. The machines useful life is estimated to be 8 years with a $8,000 salvage value. Depreciation expense in year 2 is:

A) $8,000

B) $0

C) $3,000

D) $24,000

E) $4,000