Equipment with a cost of $144,261 has an estimated residual value of $9,630 and an estimated life of 5 years or 15,196 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,499 hours?

a. $26,926.20 b. $38.48 c. $30,999.86 d. $5.00