On January 1, Year 1, Phillips Company made a basket purchase including land, a building and equipment for $840,000. The appraised values of the assets are $56,000 for the land, $840,000 for the building and $144,000 for equipment. Phillips uses the double-declining-balance method for the equipment which is estimated to have a useful life of four years and a salvage value of $10,000. What is the depreciation expense for the equipment for Year 1? (Round your intermediate calculations and final answer to the nearest whole dollar amount. Round your intermediate percentages to four decimal places: ie .054231 = 5.42%.)

Multiple Choice

$36,000

$72,000

$29,085

$58,170