On January 1, Hawaiian Specialty Foods purchased equipment for $39,000. Residual value at the end of an estimated four-year service ife is expected to be $3,900. The machine operated for 3,500 hours in the first year, and the company expects the machine to perate for a total of 29,000 hours. Determine the financial statement effects of depreciation for each of the first two years using the straight-line method. Complete this question 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.)