At the beginning of the year, Seraglio Companies bought machinery, shelving, and a forklift. The machinery initially cost $29,600 but had to be overhauled (at a cost of $2,000) before it could be installed (at a cost of $1,000) and finally put into use. The machinerys 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 $450 in each year. The shelving cost $9,800 and was expected to last 5 years, with a residual value of $700. The forklift cost $15,300 and was expected to last six years, with a residual value of $2,200. 5. Compute double-declining-balance depreciation expense for years 1 and 2 for the forklift. TIP: Remember that the formula for double-declining-balance uses cost minus accumulated depreciation (not residual value)