Thomas Enterprises purchased a depreciable asset on January 1, Year 1 at a cost of $100,000. The asset is expected to have a salvage value of $15,000 at the end of its five-year useful life. The asset is expected to produce 170,000 units over its lifetime. If the company uses the units-of-production depreciation method, and the company produced 20,000 units in the first year, what would depreciation expense be for year 1?

Group of answer choices

$9,000

$10,000

$18,000

$36,000