$!$

Required information

Exercise $7-10($Algo$)$ Determine depreciation for the first year under three methods $($LO$7-4)$

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

On January $1,$ Buy More Groceries purchased store equipment for $$16,000.$ Buy More estimates that at the end of its $10$ year service life, the equipment will be worth $$1,000.$ During the $10-$year period, the company expects to use the equipment for a total of $10,000$ hours. Buy More used the equipment for $1,520$ 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 $3$

$3.$ Activity$-$based.

Depreciation expense