On April 30, Year 1, Tilton Products purchased machinery for $88,000. The useful life of this machinery is estimated at 8 year, with $8,000 residual value. Tilton uses a calendar year-end for financial reporting. Assume that in its financial statements, Tilton Products uses the 200%-declining method and the half-year convention. Depreciation expense is Year 1 and Year 2 will be

1. $11,000 in Year 1 and $19,250 in Year 2
2. $11,000 in Year 1 and $22,000 in Year 2
3. $22,000 in Year 1 and $7,857 in Year 2
4. $22,000 in Year 1 and $12,571 in Year 2