Mountainview Resorts purchased equipment for $40,000. Residual value at the end of an estimated four-year service life is expected to be $6,400. The machine operated for 2,600 hours in the first year and the company expects the machine to operate for a total of 10,000 hours over its four year life.
Calculate depreciation expense for the first year using each of the following depreciation methods: (1) straight-line, (2) double-declining-balance, and (3) activity-based