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Super Saver Groceries purchased store equipment for $36,000. Super Saver estimates that at the end of its 12-year service life, the equipment will be worth $3,000. During the 12-year period, the company expects to use the equipment for a total of 20,000 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, Straight-line, Double-declining-balance, and Activity-based.(Do not round your intermediate calculations.)
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