ABC Corporation has the following information regarding a piece of manufacturing equipment that was purchased on January 1, 2015. Cost of the equipment = $1,200,000 Estimated residual value = $260,000 Useful life = 5 years Total productive capacity = 1,400,000 units Estimated production in 2015 = 200,000 units Estimated annual production next 4 years = 300,000 units per year What is the annual depreciation expense for 2016 if ABC Corporation uses the double-declining method of depreciation?

a.

$480,000

b.

$356,000

c.

$288,000

d.

$171,429