Apple Inc. purchased equipment for $150,000 on January 1, 2023. The equipment has an estimated useful life of 5 years and a salvage value of $10,000. Calculate the depreciation expense for the year ended December 31, 2023, using the units-of-production method, assuming 20,000 units of production for the year.

Requirements:

• Calculate the depreciation expense for the first year using the units-of-production method.
• Provide the journal entry to record the depreciation expense for 2023.