This company purchased new excavating equipment at the beginning of Year 1. The equipment has a cost of $37,000, an estimated life of five years, and an estimated residual value of $7,000. A full year's depreciation expense is to be recorded in Year 1. The equipment was used 20,000 hours during Year 1 and 24,000 hours during Year 2. The number of expected hours over five years is 100,000, Question 22 Refer to the information above for Falling Leaves Lawn Care. What is the depreciation expense for Year 1 if the company is using the straight-line and double-declining-balance depreciation methods? a. Straight-line depreciation for year 1 is $7,400; Double-declining depreciation for year 1 is $1,850 b. Straight-line depreciation for year 1 is $12,000; Double-declining depreciation for year I is $3,700 c. Straight-line depreciation for year 1 is $6,000; Double-declining depreciation for year I is $14,800 1 d. Straight-line depreciation for year 1 is $6,000, Double-declining depreciation for year 1 is $7,400