On January 1, Year 1, Philips Company made a basket purchase including land, a building and equipment for $790,000. The appraised values of the assets are $46,000 for the land, $740,000 for the building and $104,000 for equipment. Philips uses the double declining balance method of depreciation for the equipment which is estimated to have a useful life of four years and a salvage value of $10,000. The depreciation expense for Year 1 for equipment is: (Round intermediate percentages to 2 decimal places)

• $52,000
• $26,000
• $23,088
• $46,176