Equipment with a cost of $166,281.00 has an estimated residual value of $7,244.00 and an estimated life of 5 years or 14,106 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 3,780 hours?

Select the correct answer.

$42,617.32

$5.00

$42.07

$31,807.40