Equipment with a cost of $166,267.00 has an estimated residual value of $7,320.00 and an estimated life of 7 years or 12,056 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 3,874 hours?

Select the correct answer.

A) $22,706.71

B) $7.00

C) $41.03

D) $51,075.04