1. On July 1, 2024, Cashman Inc. purchased a new piece of equipment for $550,000. The equipment had an expected useful life of four years, and an expected residual value of $150,000. The company expected that in those four years, the machine would produce 45,000 units based on the following schedule: 2024 3,000 units 2025 11,000 units 2026 12,000 units 2027 10,000 units 2028 4,000 units Find the Double-declining-balance depreciation for year 1?

$206,250

$412,500

$150,000

$275,000

Which is the correct answer?