based on the following information regarding the purchase of equipment. Cost: $5,000 Salvage value: $1,000 Estimated useful life (in years): 4 years Estimated useful life (in hours): 20,000 Under the double declining balance method, what is the depreciation expense in the first year? a) $1,000 c) $2,000 b) $1,250 d) $2,500 6) Under the double declining balance method, what is the depreciation expense in the second year? a) $1,000 c) $2,000 b) $1,250 d) $2,500 7) Under the units of activity method, what would be the depreciation expense if the machine was used in the first year for 6,000 hours? a) $ 600 c) $1,500 b) $1,200 d) $4,000