Gordon Chemicals Company acquires a delivery truck at a cost of $40,000 on January 1, 2017. The truck is expected to have a salvage value of $3,400 at the end of its 5-year useful life. Assuming the declining-balance depreciation rate is double the straight-line rate, compute annual depreciation for the first and second years under the declining-balance method.

First Year Second Year Annual depreciation under declining-balance method 7320 7320