On January 1, 20X1 Krilynn PLC, the leading manufacturer of biodegradable building blocks (duplos) in Oklahoma, purchases a new machine for $2 Million. Krilynn uses straight-line depreciation for financial reporting purposes. Depreciation for tax purposes is calculated using the double declining balance method. The useful life for both GAAP and tax purposes is 4 years. The salvage value of the machine is anticipated to be $150,000. A full year of depreciation is taken for both GAAP and tax purposes. The tax rate is 21%.

What is the GAAP Depreciation expense using the straight line method in year 1?

Group of answer choices

$500,000

$462,500

$1,000,000

$850,000