Bears, Inc. bought equipment on Jan. 1 of Year 1, for $95,000. The equipment was expected to remain in service for five years and produce 10,000 widgets. At the end of the equipment's useful life, it is expected to have a salvage value $5,000. The equipment produced 900 units in year 1. 1. Compute units of production depreciation on the equipment for year 1. 2. Journalize units of production depreciation for year 1. 3. Journalize the sale of equipment on Jan. 1 of Year 3. Assume for this part of the problem only that the equipment was sold for $40,000 and total accumulated depreciation is $35,000.