Equipment with a cost of $145,191.00 has an estimated residual value of $7,298.00 and an estimated life of 5 years or 14,327 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 3,173 hours?

Select the correct answer.

1. $43.46 2. $5.00 3. $30,539.16 4. $27,578.60