Nadler Inc. purchased equipment for $48,000, and estimated that the equipment will have a $4,000 residual value at the end of its 8-year useful life. Using the double-declining-balance method, the depreciation expense for the third year would be

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Calculation: [$48,000 × (2 ÷ 8)] = $12,000 First year [($48,000 - $12,000) × (2 ÷ 8)] = $9,000 Second year [(48,000 - $12,000 - $9,000) × (2 ÷ 8)] = 6,750 Third year .