Question - What would be the depreciation expense in year 1, using units-of-production, for a molding machine that cost $18,000, had a useful life of 3 years, and an estimated total machine hours of 36,000? The salvage value is $3,000 and production in year 1 was 10,000 hours.
1. $5,000
2. $4,167
3. $6,000
4. $2,167