On January 1, Pandemic Groceries purchased store equipment for $37,000. Pandemic estimates that at the end of its 10 -year service life, the equipment will be worth $4,000. During the 10 -year period, the company expects to use the equipment for a total of 11,000 hours. Pandemic used the equipment for 1,800 hours the first year. Required: Calculate depreciation expense of the equipment for the first year, using each of the following methods. (Do not round your intermediate calculations.) Exercise 7-10 (Algo) Part 3 3. Activity-based. Depreciation expense