Question: Using the activity method, calculate the first two years of depreciation expense for a piece of equipment that cost $85,000, has an estimated useful life

Using the activity method, calculate the first two years of depreciation expense for a piece of equipment that cost $85,000, has an estimated useful life of 5,000,000 hours, and has an estimated salvage value of $5,000. The number of hours used each year is as follows:

Year 1........1,250,000

Year 2........1,000,000

Year 3........ 650,000

Year 4........ 850,000

Year 5........1,250,000

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