Super Saver Groceries purchased store equipment for $20,500. Super Saver 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. Super Saver used the equipment for 1,580 hours the first year.

Required:

Calculate depreciation expense of the equipment for the first year, using each of the following methods.

1. Straight-Line

2. Double-Declining Balance

3. Activity Base