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Question: Super Saver Groceries purchased store equipment for $21,000. Super Saver estimates that at the end of its 10-year service life, the equipment will be worth $1,000. 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 1,500 hours the first year.

Required: Calculate depreciation expense of the equipment for the first year, using each of the following methods. Round all amounts to the nearest dollar.

1. Straight-line.

2. Double-declining-balance.

3. Activity-based.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92330106

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