On January 2, 2007, Mosby Corporation Acquired Equipment for $200,000

On January 2, 2007, Mosby Corporation acquired equipment for $200,000. The estimated life of the equipment is 8 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 Mosby Corporation uses the double- declining- balance method of depreciation?

A) $150,000
B) $72,000
C) $128,000
D) $87,500