1. On January 1, 2020, equipment is purchased for $450,000 that has an estimated residual value of $3,000 and an estimated useful life of 10 years. The equipment is expected to produce 150,000 units of output over its useful life. The equipment produced 16,500 units in its first year. Determine depreciation expense for 2020, using units-of-production depreciation method. A) $48,170 B) $49,170 C) $50,170 D) $51,320