On January 1, 2014, Rugh Company purchased equipment with a list price of $32,000 with a 2% cash discount. The equipment was delivered under terms of FOB destination and freight costs amounted to $900. A total of $6,000 was paid for installation and testing. During the first year, Rugh paid $850 for insurance on the equipment and another $750 for routine maintenance and repairs. Rugh uses the units-of-production method of depreciation. Useful life is estimated at 5 years or 500,000 units and estimated salvage value is $2,000. During 2014, the equipment produced 100,000 units. What is the amount of depreciation for 2014?

$7,652

$6,272

$7,072

$7,472