Question
Super Saver Groceries purchased store equipment for $44,500. Super Saver estimates that at the end of its 10-year service life, the equipment will be worth
Super Saver Groceries purchased store equipment for $44,500. Super Saver estimates that at the end of its 10-year service life, the equipment will be worth $4,500. During the 10-year period, the company expects to use the equipment for a total of 10,000 hours. Super Saver used the equipment for 1,400 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.)
1. Straight-line.
2. Double-declining-balance.
3. Activity-based.
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