Exercise 8-7A (Algo) Effect of depreciation on the accounting equation and financial statements LO 8-2 [The following information applies to the questions displayed below.] The following events apply to Gulf Seafood for the Year 1 fiscal year: 1. The company started when it acquired $20,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $17,000 cash. 3. Earned $22,800 in cash revenue. 4. Paid $11,500 cash for salarles expense. 5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected useful life of four years and an estimated salvage value of $2,800. Use straight-line depreciation. The adjustment was made as of December 31, Year 1. Exercise 8-7A (Algo) Part b b. What amount of depreciation expense would Gulf Seafood report on the Year 1 income statement