A company buys a piece of equipment for $62,000. The equipment has a useful life of five years. No residual value is expected at the end of the useful life. Using the double-declining-balance method, what is the company's depreciation expense in the first year of the equipments useful life? (Do not round intermediate calculations)

$12,400.

$24,800.

$15,500.

$31,000.

An asset is purchased on January 1 for $47,200. It is expected to have a useful life of four years after which it will have an expected residual value of $6,500. The company uses the straight-line method. If it is sold for $33,000 exactly two years after it is purchased, the company will record a:

gain of $6,150.

loss of $8,050.

gain of $8,050.

loss of $6,150.