On January 2, 2014, Able Company acquired new equipment at a cost of $290,000. The machine has an estimated useful life of 5 years, or 25,000 operating hours, after which it will have an estimated residual value of $15,000. Compute the depreciation charges for the first two years (2014 and 2015), using the following methods. (Show all computations).

a. Straight-line

b. Units-of-production (Equipment was used 8,000 hours during 2014 and 7,000 hours during 2015.)

c. Double-declining balance