On January 1, 2014, Rubens Company made a basket purchase including land, a building and equipment for $380,000. The appraised values of the assets are $20,000 for the land, $340,000 for the building and $40,000 for equipment. Rubens uses the double declining balance method of depreciation for the equipment which is estimated to have a useful life of five years and a salvage value of $5,000. For 2014, the depreciation expense on the equipment is:

Question 15 options:

1)

$7,600

2)

$13,200

3)

$9,120

4)

$15,200