Problem:
Whole Foods, the world's leader in natural and organic foods, has more than 310 stores and 62,000 employees in North America and the United Kingdom. A new store is being built in San Antonio, Texas, at the Vineyard shopping center. A commercial oven for $6,678 with a 4-year life and residual value of $1,150 was purchased for the store.
Required:
Question: What is the depreciation expense in year 2 for the oven? Use the straight-line method.
Note: Be sure to show how you arrived at your answer.