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 second year of its useful life using the units-of-production method? 16,000 45,000 33,750 24,000 20,000

To calculate the depreciation expense using the units-of-production method, we first need to determine the depreciation cost per unit. The formula for this is: Given:- Cost of Equipment = - Total Estimated Units = 40,000 unitsSubstituting these values into the formula gives: The depreciation expense for a given year is then calculated by multiplying the depreciation cost per unit by the number of units produced in that year.For Year 2, the actual units produced are 6,000 units. Therefore, the depreciation expense for Year 2 is: Thus, the depreciation expense for the second year of its useful life using the units-of-production method is .