Keyser Co. purchases equipment on January 1, Year 1 at a cost of $575,000. The equipment is expected to have a service life of 15 years or 40,000 hours and a salvage value of $5,000. Keyser Co.'s year end is December 31. 5. Compute the amount of depreciation for each of years 1-3 using the working hours method. The equipment was in operation for 2, 100 hours in Year 1, 2,600 hours in Year 2 and 1,800 hours in Year 3