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? 24,000 33,750 12,000 4,000 164,000

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 cost per unit is Thus, the depreciation expense for the final year of its useful life using the units-of-production method is . The correct answer is: .