On January 1,Year 1,Phillips Company Made a Basket Purchase Including

Multiple Choice

On January 1,Year 1,Phillips Company made a basket purchase including land,a building and equipment for $380,000.The appraised values of the assets are $20,000 for the land,$340,000 for the building and $40,000 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 $5,000.What is the depreciation expense for the equipment for Year 1?

A) $17,000
B) $20,000
C) $9,500
D) $19,000