Fields Company purchased equipment on January 1 for 180,000 This system has a useful life of 8 years and a salvage value of 20,000 The company estimates that the equipment will produce 40,000 units over its 8-year useful life Actual units produced are: Year 1 - 4,000 units; Year 2-6,000 units; Year 3 - 8 ,000 units; Year 4-5,000units Year 5 - 4,000 units Year 6 - 5,000 units; Year 7 - 7,000 units; . Year 8 - 3 ,000 units. What would be the depreciation expense for the first year of its useful life using the double-declining-balance method? 20,000 16,000 24,000 33,750 45,000

To calculate the depreciation expense for the first year using the double-declining-balance (DDB) method, we need to follow these steps:1. **Determine the straight-line depreciation rate**: The straight-line depreciation rate is calculated as . For this equipment, the useful life is 8 years, so the straight-line rate is or 12.5%.2. **Double the straight-line rate**: The DDB method requires doubling the straight-line rate. So, the DDB rate is or 25%.3. **Calculate the first year's depreciation expense**: The initial book value of the equipment is its purchase price, which is \ .