Ouyang Inc. acquired equipment for $100,000 with a 4-year useful life and $20,000 residual value in 2013. The equipment can be used to produce 10,000 units in its whole life and produced 1,000 units during 2013. Which of the following is true regarding the depreciation expense in 2013?

Depreciation under units-of-production is $12,000 lower than that under straight-line depreciation.

Depreciation under units-of-production is $12,000 higher than that under straight-line depreciation.

Depreciation under units-of-production is the same as that under straight-line depreciation.

Depreciation under units-of-production is $10,000 lower than that under straight-line depreciation.

Depreciation under units-of-production is $10,000 higher than that under straight-line depreciation.