On January 1, Hawaiian Specialty Foods purchased equipment for $36,000. Residual value at the end of an estimated four-year service life is expected to be $3,500. The machine operated for 3,160 hours in the first year, and the company expects the machine to operate for a total of 26,000 hours.

Determine the financial statement effects of depreciation for each of the first two years using the straight-line method.

On January 1, Hawaiian Specialty Foods purchased equipment for $36,000. Residual value at the end of an estimated four-year service ife is expected to be $3,500. The machine operated for 3,160 hours in the first year, and the company expects the machine to operate for a total of 26,000 hours. Determine the financial statement effects of depreciation for each of the first two years using the straight-line method. Complete this questlon by entering your answers in the tabs below. Determine the financial statement effects of depreciation for year 1 using the straight-line method. (Amounts to be deducted should be entered with minus sign.)