Martin Company Purchases a Machine at the Beginning of the Year

Martin Company purchases a machine at the beginning of the year at a cost of $60,000. The machine is depreciated using the double-declining-balance method. The machine's useful life is estimated to be 4 years with a $5,000 salvage value.
- The machine's book value at the end of year 3 is:

A) $45,000.
B) $30,000.
C) $7,500.
D) $6,875.
E) $52,500.