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 $18,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $12,700 cash. 3. Earned $20,300 in cash revenue. 4. Paid $11,000 cash for salaries 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 $2,900. 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