Fields Company Purchased Equipment on January 1 for $180,000

Multiple Choice

Fields Company purchased equipment on January 1 for $180,000.This system has a useful life of 8 years and a salvage value of $20,000.The company estimates that the equipment will produce 40,000 units over its 8-year useful life.Actual units produced are: Year 1 - 4,000 units; Year 2 - 6,000 units; Year 3 - 8,000 units; Year 4 - 5,000 units; Year 5 - 4,000 units; Year 6 - 5,000 units; Year 7 - 7,000 units; Year 8 - 3,000 units.What would be the depreciation expense for the final year of its useful life using the units-of-production method?

A) $164,000.
B) $12,000.
C) $33,750.
D) $24,000.
E) $4,000.