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Required information

Exercise $7-10($Alg$$o$)$ Determine depreciation for the first year under three methods $($LO$\mathrm{.}7-4)$

$[$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.$)$

Exercise $7-10($Algo$)$ Part $1$

Straight$-$line.

Depreciation expense

Exercise $7-10($Algo$)$ Part $2$

Double$-$declining$-$balance.

Depreciation expense

Exercise $7-10($Algo$)$ Part $3$

$3.$ Activity$-$based.

Depreciation expense