20. Darnell Company purchased a new piece of equipment on January 1, 2010 at a cost of $900,000. The equipment has an estimated useful life of 5 years and an estimated salvage value of $80,000. Management estimates that the equipment could be used 500,000 hours over its life. 4,000 hours were used in 2010. Darnell uses the 150% declining balance method. The straight-line rate is a. 20% b. 35% c. 25% d. 50% e. 30%