Harlem Corporation purchased a piece of equipment on 1 June 20X1 for 15,000. The equipment has an estimated life of ten years or 25,000 units of production and an estimated residual value of 2,500. The amount of depreciation to be recorded for the year 20X1, using the straight-line method of calculating depreciation and assum- ing a 31 December year-end, is:

(a) 1,500.

(b) 875.

(c) 729.

(d) None of the above.