7) A DOUBLE-DECLINING BALANCE QUESTION: A company's property records revealed the following information about one of its plant assets: Cost: $100,000 Salvage value: $5,000 Purchase date: January 01 Estimated life: 5 years Depreciation method: DOUBLE-DECLINING BALANCE Calculate the depreciation expense in Year 1 and Year 2 for the year ended December 31. Hint: Calculate the double- declining depreciation rate first. Year Beginning Book Value Depreciation Rate Annual Depreciation Expense Accumulated Depreciation Ending Book Value Year 1 Year 2 Year 3