On April 30, Year 1, Tilton Products purchased machinery for $198,000. The useful life of this machinery is estimated at 8 years, with an $18,000 residual value. Tilton uses a calendar year-end for financial reporting. Assume that in its financial statements, Tilton Products uses straight-line depreciation and rounds depreciation for fractional years to the nearest month. Depreciation expense recognized on this machinery in Year 1 and Year 2 will be:

• $15,000 in Year 1 and $22,500 in Year 2.

• $22,500 in Year 1 and $22,500 in Year 2.

• $9,000 in Year 1 and $22,500 in Year 2.

• $12,000 in Year 1 and $22,500 in Year 2.