Last year, Company ABC had additions to retained earnings of $5,375 on sales of $97,275. The company had costs of $76,875, dividends of $3,400, and interest expense of $2,600. If the tax rate was 40 percent, what was the depreciation expense?

A.

$3,572

B.

$12,133

C.

$4,523

D.

$3,175