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Required information Exercise 7-10 (Algo) Determine depreciation for the first year under three methods (LO7-4) [The following information applies to the questions displayed below] On January 1, Buy More Groceries purchased store equipment for $31,000. Buy More estimates that at the end of its 10 year service life, the equipment will be worth $4,000. During the 10 -year period, the company expects to use the equipment for a total of 10,000 hours. Buy More used the equipment for 1,500 hours the first year. Required: Calculate depreciation expense of the equipment for the first year, using each of the following methods. (Do not round your intermediate calculations.) Exercise 7-10 (Algo) Part 1 1. Straight-line