On January 1, Hawalian Specialty Foods purchased equipment for $38,000. Residual value at the end of an estimated four-year service life is expected to be $4,400. The company expects the machine to operate for a total of 28,000 hours. The machine operated for 3,180 hours in the first year and 3,480 hours in the second year. Record depreciation expense for the first two years using the activity-based method. (If no entry is required for a particular transaction/event, select "No Joumal Entry Required" in the first account field.)