On January 1, Year 1, a company purchased equipment for $146,000. The estimated service life of the equipment is 10 years and the estimated residual value is $3,000. The equipment is expected to produce 220,000 units during its life. Required: Calculate depreciation for Year 1 and Year 2 using each of the following methods. 3. Units of production (units produced in Year 1, 38,000; units produced in Year 2, 33,000). Note: Round "Depreciation per unit rate" answers to 2 decimal places. Select formula for Units of Production Depreciation: (Cost-Residual)/Total units of production Calculate Year 1 depreciation expense: Depreciation per unit rate Units produced in Year 1 Depreciation in Year 1 Calculate Year 2 depreciation expense: 38,000 Depreciation per unit rate Units produced in Year 2 Depreciation in Year 2 33,000