The machine that was used to produce textbooks cost $600,000 when it was purchased new one year ago. It has an expected life span of five years. The income statement showed the straight line deprecation rate as 5%. Using double declining balance depreciation, the book value of the machine at the end of year two will be __________.

a.) $540,000

b.) $360,000

c.) $426,000

d.) $486,000