The Upatheka Company acquired equipment for $500,000. The industrial engineer estimated that the equipment would last four years and sell for $ 50,000 afterward. The Internal Revenue Service rated the equipment as a three-year asset. The economic forecast predicted the following sales level. Year 1 3,000 Year 2 4,000 Year 3 5,000 Year 4 3,000 Required: Calculate depreciation expense for years 1 through 3 assuming that management applies the unit-of-production method. Calculate the book value after three years assuming that management applies the unit-of-production method.