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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
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) doubledeclining-balance, and (3) activity-based. (Do not round your intermediate calculations.) \begin{tabular}{|l|lc|} \hline & Depreciation Expense \\ \hline (1) Straight-line & $ & 6,750 \\ \hline (2) Double-declining-balance & $ & 15,000 \\ \hline (3) Activity-based & $ & 4,650 \\ \hline \end{tabular}
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