something is wrong with this question.
If the market value is X, then
after 1 year it is 0.7X
2 years later it must be 0.7X*0.7=0.49X
so answer should be 0.49*8000=3920
but there is no such answer.
maybe they took 8000 *(1-2*0.3)=3200
I think that the 3,200 is correct; there isn't anything wrong. The question states that "decreased by 30 percent of its purchase price
each year," which to me, indicates a 30% drop in value per year of the machine.
Does it make sense to depreciate in that method? I don't think so, but the way the question is worded, I would go with 3,200.