A business purchased an asset that had a total cost of $125000 and a residual value of $5000. The asset is expected to service the business for a period of 5 years.  The machine was purchased on January 1^st of the current year and has been in service one complete year.  

If business used double declining balance method (aka reducing-balance method) and rate of 40%, how much the annual depreciation for year 3 would be? (ignore VAT)