John is a contractor who has just purchased a tractor for use in his business. He paid $25,000 plus $1,250 in sales tax for the tractor. The local municipality also imposes an annual personal property tax of $500. The tractor has an expected useful life of 5 years. What is Johns basis in the tractor for depreciation purposes?

	a.	$25,500
	b.	$25,000
	c.	$26,750
	d.	$26,250