On January 2 of the current year, Mr. Quick, a sole proprietor, purchased a new van to be used in his business. He traded in a used van with an adjusted basis of $2,500 and paid $7,500 cash. He did not elect a Sec. 179 deduction for the van. Assuming the van is a 5-year asset, what is the amount that will be depreciable over that life?

$10,000

$7,500

$0

$2,500