A company has the following information available about an equipment:

Cost	$ 350,000
Estimated residual Value	$ 10,000
Estimated useful life	10 years
Total estimated output	65,000 hours
Actual hours used year during the first year of operation	5,500 hours

What is the depreciation expense for the first year under the straight-line method?

Select one:

A. $38,000

B. $34,000

C. $68,000

D. $28,769