Question - Super Saver Groceries purchased store equipment for $37,000. Super Saver estimates that at the end of its 10-year service life, the equipment will be worth $4,000. During the 10-year period, the company expects to use the equipment for a total of 11,000 hours. Super Saver used the equipment for 1,800 hours the first year.
Required: Calculate depreciation expense of the equipment for the first year, using each of the following methods.
Depreciation expense for Straight line Method:
Depreciation expense for Double-Declining Balance:
Depreciation expense for Activity-based: