STU Ltd acquired a building for $1,000,000 on January 1, 2020. The building has an estimated useful life of 40 years and a salvage value of $100,000. STU Ltd uses the units-of-production method for depreciation. During the year 2024, the building produced 10,000 units. Calculate the depreciation expense for the year.

Requirement:

• Provide the calculation of depreciation expense using the units-of-production method.
• Explain how the units-of-production method differs from other depreciation methods.