Please provide an explanation

QUESTION 4

A firm bought a non-current asset for 500,000, with an estimated scrap value of zero. If the asset is depreciated at 20% per annum using the reducing balance method, what would be the depreciation for the second year and how would it compare to the depreciation for the fourth year?

1. Depreciation for the second year would be 100,000, and would be lower than the depreciation for the fourth year
2. Depreciation for the second year would be 100,000, and would be higher than the depreciation for the fourth year
3. Depreciation for the second year would be 80,000, and would be lower than the depreciation for the fourth year
4. Depreciation for the second year would be 80,000, and would be higher than the depreciation for the fourth year