On January4, 2019,Margaret's Cafe acquired equipment for $147,500. The estimated life of the equipment is 4 years or42,500 hours. The estimated residual value is $20,000. What is the depreciation for2019, ifMargaret's Cafe uses the asset 14,500 hours and uses the unitsofproduction method ofdepreciation?

A.

$31,875

B.

$20,000

C.

$43,500

D.

$ 36,875