On January 1, Year 1, Phillips Company made a basket purchas…
On January 1, Year 1, Phillips Company made a basket purchase including land, a building and equipment for $1,005,000. The appraised values of the assets are $72,000 for the land, $1,000,000 for the building and $208,000 for equipment. Phillips uses the double-declining-balance method for the equipment which is estimated to have a useful life of four years and a salvage value of $10,000. What is the depreciation expense for the equipment for Year 1?Note: Round your intermediate calculations to 4 decimal places.