On January 1, Year 1, Milton Manufacturing Company Purchased Equipment

On January 1, Year 1, Milton Manufacturing Company purchased equipment with a list price of $28,000. A total of $2,200 was paid for installation and testing. During the first year, Milton paid $3,300 for insurance on the equipment and another $610 for routine maintenance and repairs. Milton uses the units-of-production method of depreciation. Useful life is estimated at 100,000 units, and estimated salvage value is $4,400. During Year 1, the equipment produced 12,000 units. What is closest to the amount of depreciation for the year? (Do not round intermediate calculations.)

A) $3,096
B) $3,565
C) $4,020
D) $3,492