Refer to the information in BE7-10. In addition, assume the machine operated for an additional 3,400 hours in the second year. Record depreciation expense for the first two years using the activity-based method.

Data from in BE7-10

On January 1, Hawaiian Specialty Foods purchased equipment for $30,000. Residual value at the end of an estimated four-year service life is expected to be $3,000. The machine operated for 3,100 hours in the first year, and the company expects the machine to operate for a total of 20,000 hours. Calculate depreciation expense for the first year using each of the following depreciation methods: (1) straight-line, (2) double-declining-balance, and (3) activity-based.