$!$

Required information

$[$The following information applies to the questions displayed below.$]$

On January $1,$ Save More Groceries purchased store equipment for $$38,500.$ Save More estimates that at the end of its $10-$

year service life, the equipment will be worth $$2,500.$ During the $10-$year period, the company expects to use the

equipment for a total of $12,000$ hours. Save More used the equipment for $1,620$ 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.$)$

Activity$-$based.

Depreciation expense