On January 1, Buy More Grocerles purchased store equipment for$20,500. Buy More 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. Buy More used the equipment for 1,580 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. 2. Double-declining-balance  3. Activity-based .

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, Buy More Grocerles purchased store equipment for$20,500. Buy More 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. Buy More used the equipment for 1,580 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.
2. Double-declining-balance
 3. Activity-based .
 
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