Consider the following information for a machine:

Cost = $20,000

Estimated life = 5 years

Straight line depreciation = 10%

Using the double declining balance method,determine the book value at the end of Year 1 and Year 2.

a.) End of Year one = $18,000 End of Year two = $14,200

b.) End of Year one = $18,000 End of Year two = $16,200

c.) End of Year one =$16,000 End of Year two =$12,800

d.) End of Year one = $16,000 End of Year two = $8,800