On January 1, Year 1, Milton Manufacturing Company purchased equipment with a list price of $36,000. A total of $3,800 was paid for installation and testing. Milton uses the units-of-production method of depreciation. Useful life is estimated at 100,000 units, and estimated salvage value is $7,600. During Year 1, the equipment produced 12,000 units. What is the amount of depreciation for Year 1? $4,548 $4,631 $5,460 $3,864 None of the above