Daisy owns a condominium in the Hilton Head Island, South Carolina. During the year, Daisy uses the condo for a total of 25 days. The condo is also rented to vacationers for a total of 100 days and generates a rental income of $38,000. Daisy incurs the following expenses:

Expense	Amount
Mortgage interest	$ 10,000
Property taxes	14,800
Utilities	4,000
Insurance	2,800
Depreciation (Annual)	17,500

Using the IRS method of allocating expenses, the amount of depreciation that Daisy may take with respect to the rental property will be? Show work.

A) $ 3,500.

B) $ 6,780

C) $12,720.

D) $14,000.