Required information [The following information applies to the questions displayed below.] On January 1, Year 1, a company purchased equipment for $162,000. The estimated service life of the equipment is 10 years and the estimated residual value is $8,000. The equipment is expected to produce 350,000 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, 42,000; units produced in Year 2, 37,000). Note: Round "Depreciation per unit rate" answers to 2 decimal places. Select formula for Units of Production Depreciation: Calculate Year 1 depreciation expense: Depreciation per unit rate Units produced in Year 1 Depreciation in Year 1 Calculate Year 2 depreciation expense: Depreciation per unit rate Units produced in Year 2 Depreciation in Year 2