On January 1, Year 1, Hills purchased equipment for $350,000. The equipment had an estimated useful life of ten years and an estimated residual value of $50,000. Use the double-declining-balance method to answer the following question(s). 35.

1. How much depreciation should Hills record on the asset in year 1?

a. $35,000

b. $30,600

c. $60,000

d. $70,000

2. How much depreciation should Hills record on the asset in year 2?

a. $16,000

b. $24,000

c. $56,000

d. $48,000