Required information Exercise 8-7A Effect of depreciation on the accounting equation and financlal statements LO 8-2 The following information applies to the questions displayed below The following events apply to Gulf Seafood for the Year 1 fiscal year 1. The company started when it acquired $19,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $15,500 cash. 3. Earned $21,400 in cash revenue. 4. Paid $13,000 cash for salaries expense. 5.Adjusted the records to reflect the use of the cooktop. Purchased on January 1 Year 1, the cooktop has an expected useful life of four years and an estimated salvage value of $2,100. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1. Exercise 8-7A Part b b. What amount of depreciation expense would Gulf Seafood report on the Year 1 income statement? Depreciation expense