On January 1, Year 1, Phillips Company made a basket purchase including land, a building and equipment for $1,040,000. The appraised values of the assets are $74,000 for the land, $1,020,000 for the building and $216,000 for equipment. Phillips 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 the equipment is: (Round your intermediate percentages to 2 decimal places: ie .054231=5.42%. Multiple Choice $108,000 $54,000. $42,874