ABC Company purchased a machine for $2 million that can produce 3,000,000 products over its useful life. The company estimates that this machine has a salvage value of $200,000. Assume in Year 1, the machine produced 200,000 products. The amount of depreciation that should be recorded for the first year is:

a.

$120 000

b.

$135 000

c.

$58 000

d.

$48 900