A company's annual accounting period ends on September 30. During the current year a depreciable asset which cost $16,000 was purchased on January 1 from a common supplier. The asset has a $2,000 estimated salvage value and a 4-year useful life. The company uses straight line depreciation. What is the total depreciation expense on this item in year 1? (Pay close attention to the dates) $2,675 $3,500 $4,000 $3,000 $875