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Required information [The following information applies to the questions displayed below] At the beginning of the year, Seraglio Companies bought machinery, shelving, and a forklif. The machinery initially cost $26,400 but had to be overhauled (at a cost of $1,360 ) before it could be installed (at a cost of $680 ) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2 . Repair costs were $370 in each year. The shelving cost $9,400 and was expected to last 5 years, with a residual value of $620. The forklift cost $11,700 and was expected to last six years, with a residual value of $2,040. 5. Compute double-declining-balance depreciation expense for years 1 and 2 for the forklif. TIP. Remember that the formula for double-declining-balance uses cost minus accumulated depreciation (not residual value)