1) Use the following information to answer these questions.

On January 1, our company purchased a truck for $85,000. The estimated useful life of the truck is 4 years. The residual value at the end of 4 years is estimated to be $5,000.

1a) What is the depreciation expense for the second year of use if we use the double-declining balance method?

["$40,000", "$22,500", "$21,250", "$42,500"']

b) What is the balance in accumulated depreciation at the end of the second year of use if we use the double-declining balance method?

["$63,750", "$62,500", "$42,500", "$45,000"]

c) What is the book value at the end of the second year of use if we use the double-declining balance method?

["$42,500", "$45,000", "$22,500", "$21,250"]