Super Saver Groceries purchased store equipment for $35,500. Super Saver estimat

Question

Super Saver Groceries purchased store equipment for $35,500. Super Saver estimates that at the end of its 10-year service life, the equipment will be worth $3,500. 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 1,700 hours the first year Required: Calculate depreciation expense of the equipment for the first year, using each of the following methods. (Do not round your intermediate calculations.) 1. Straight-line. Depreciation expense 2. Double-declining-balance. Depreciation expense 3. Activity-based. epreciation expense

Explanation / Answer

1 Depreciation expense=(35500-3500)/10= $3200 2 Depreciation expense=35500*20%= $7100 3 Depreciation expense=(35500-3500)/10000*1700= $5440

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