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Problem 1: MaryAlice Inc owns a piece of equipment that it had purchased January 1, 2019 for 400,000. The equipment had an estimated useful life of 10 years and a production capacity for 80,000 units. It was expected to have no residual value. The company uses the units of production method to record depreciation for all equipment. The equipment was able to product 15,000 units in the first year, 18,000 units in the second year and 28,000 units in the third year. The machine was sold part-way through the third year (June 1) for 35,000. What was the total accumulated depreciation as of June 1 of the third year when sold?
Option 1: 90,000
Option 2: 75,000
Option 3: 305,000
Option 4: 140,000
Option 5: 152,500
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