ABC Corporation has the following information regarding a piece of manufacturing equipment that was purchased on January 1, 2017. Cost of the equipment = $1,200,000 Estimated residual value = $210,000 Useful life = 7 years Total productive capacity = 1,850,000 units Estimated production in 2017 = 150,000 units Estimated annual production in 2018 and 2019 = 250,000 units per year Estimated annual production last 4 years = 300,000 units per year What is the annual depreciation expense in 2020 if the company uses the units-of-production method of depreciation?

a. $141,429 b. $194,595 c. $162,335 d. $160,541 e. $133,784