On January 1, Hawaiian Specialty Foods purchased equipment for $37,000. Residual value at the end of an estimated four-year service life is expected to be $3,200. The machine operated for 3,400 hours in the first year, and the company expects the machine to operate for a total of 27,000 hours.

Record depreciation expense for each of the first two years using the straight-line method. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)