Equipment That Cost of $180,000 Has an Estimated Residual Value

Multiple Choice

Equipment that cost of $180,000 has an estimated residual value of $15,000 and an estimated useful life of 4 years or 25,000 hours. Using the units-of-production method, the depreciation expense for the first year, during which the machine was used 3,300 hours, would be

A) $45,000.
B) $41,500.
C) $23,760.
D) $21,780.