Super Saver Groceries purchased store equipment for $20,500. Super Saver estimates that at the end of its 10-year service life, the equipment will be worth $2,500. During the 10-year period, the company expects to use the equipment for a total of 12,000 hours. Super Saver used the equipment for 1,580 hours the first year. 1) Calculate depreciation expense of the equipment for the first year, using straight-line method. 2) Calculate depreciation expense of the equipment for the first year, using double-declining-balance method.3) Calculate depreciation expense of the equipment for the first year, using activity-based.
