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Required information

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Steve's Outdoor Company purchased a new delivery van on January $1$ for $$45,000$ plus $$3,800$ in sales tax. The company paid $$12,800$ cash on the van $($including the sales tax$),$ signing an $8$ percent note for the $$36,000$ balance due in nine months $($on September $30).$ On January $2,$ the company paid cash of $$700$ to have the company name and logo painted on the van. On September $30,$ the company paid the balance due on the van plus the interest. On December $31($the end of the accounting period$),$ Steve's Outdoor recorded depreciation on the van using the straight$-$line method with an estimated useful life of $5$ years and an estimated residual value of $$4,500.$

$3.$ Compute the depreciation expense to be reported for Year $1.$

Depreciation expense