Brief Exercise 7-12 (Static) Record depreciation using activity-based method (LO7-4) On January 1, Hawaiian Specialty Foods purchased equipment for $30,000. Residual value at the end of an estimated four-year service life is expected to be $3,000. The company expects the machine to operate for a total of 20,000 hours. The machine operated for 3,100 hours in the first year and 3,400 hours in the second year. Record depreciation expense for the first two years using the activity-based method. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 Record the depreciation expense for the first year using the activity-based method. Note: Enter debits before credits Date Year 1 General Journal Debit Credit