Modern Products Company purchased new packaging equipment for $245,000 on January 1, 2013. The equipment is expected to be used for 6 years, or 60,000 operating hours. It has an estimated salvage value of $5,000. The equipment was used for 10,000 hours in 2013, 15,000 hours in 2014, and 12,000 hours in 2015. Compute annual depreciation expense for the first three years, using the straight-line method, the double-declining balance method, and the units of output method. Straight-Line Double-Declining Units of Output Balance 2013 2014 2015