The Mash Tun Corp.purchased equipment on September 1,2016 for $200,000.The residual value is $20,000 and the estimated life is 5 years or 60,000 hours.Compute depreciation expense for the year ending December 31,2017,if the Mash Tun Corp.uses the double-declining-balance method of depreciation.

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The double-declining-balance method of depreciation results in a higher depreciation expense in the early years of an asset's life. The depreciation rate is 2 times the straight-line rate, or 40% in this case. The depreciation expense for the year ending December 31, 2017 is $69,333.