The Tao Inc. purchased an asset for $170,000 with a salvage value of $8,500 have a useful life of four years. Find the depreciation expense for the first year using the 150% declining balance method.

To find the depreciation expense for the first year using the 150% declining balance method, we need to understand the concept of depreciation and how it is calculated.

Depreciation is the systematic allocation of the cost of an asset over its useful life. The declining balance method is one way to calculate depreciation, where a higher depreciation expense is allocated in the earlier years and decreases over time.

In the 150% declining balance method, we start with a depreciation rate of 150% of the straight-line rate. The straight-line rate is calculated by dividing the difference between the asset's cost and its salvage value by its useful life.

Let's go step by step to calculate the depreciation expense:

1. Calculate the straight-line rate:
Straight-line rate = (Cost - Salvage value) / Useful life
Straight-line rate = ($170,000 - $8,500) / 4 = $40,875

2. Calculate the 150% declining balance rate:
Declining balance rate = 150% * Straight-line rate
Declining balance rate = 1.5 * $40,875 = $61,312.50

3. Calculate the depreciation expense for the first year:
Depreciation expense = Beginning book value * Declining balance rate
Note: The beginning book value for the first year is the cost of the asset.
Depreciation expense = $170,000 * $61,312.50

The depreciation expense for the first year using the 150% declining balance method would be $61,312.50.