On January 1, 2011, the Allegheny Corporation purchased machinery for $115,000 and put it in service. The estimated service life of the machinery is 10 years and the estimated residual value is $5,000. The machine is expected to produce 220,000 units during its life.

16. Assume that the Allegheny Corporation uses the sum-of-the-years-digit method and the machinery is put in service on July 1, 2011, how much is the depreciation expense that the Allegheny Corporation should recognize in 2012?

A. $17,000

B. $18,000

C. $20,000

D. None of the above answers is correct.