Equipment with a Cost of $160,000 Has an Estimated Residual

Multiple Choice

Equipment with a cost of $160,000 has an estimated residual value of $10,000 and an estimated life of 4 years or 12,000 hours. It is to be depreciated by the units-of-production method. What is the amount of depreciation expense for the first full year, during which the equipment was used 3,300 hours?

A) $40,000.
B) $41,250.
C) $42,500.
D) $37,500.