On January $1,$ Year $1,$ Milton Manufacturing Company purchased equipment with a list price of $$88,000.$ A total of $$4,000$ was paid for installation and testing. During the first year, Milton paid $$6,000$ for insurance on the equipment and another $$2,200$ for routine maintenance and repairs. Milton uses the units$-$of$-$production method of depreciation. Useful life is estimated at $100,000$ units, and estimated salvage value is $$8,000.$ During Year $1,$ the equipment produced $13,000$ units. What is the amount of depreciation for Year $1?$

Multiple Choice

$$10,920$

$$11,960$

$$11,700$

$$12,740$