Leases equipment under a 4-year lease requiring equal annual payments of $172076, which the first payment due at lease inception. The lease does not transfer ownership, not is there a bargain purchase option. The equipment has a 4-year useful life and no salvage value. Incremental borrowing rate is 10% and the rate implicit in the lease is 8%. The straight-line method is used to depreciate similar assets.

What is the amount of depreciation expenses recorded in the first year of asset's life?