Super Saver Groceries purchased store equipment for $25,000. 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 10,000 hours. Super Saver used the equipment for 1,600 hours the first year. Required: Calculate depreciation expense of the equipment for the first year, using each of the following methods
1. Straight-line.
Depreciation expence:
2. Double Declining Method
Depreciation expence:
3. Activity Based
Depreciation Expence: