Rayonier Forrest Resources purchased a small tract of timberland for $70,000 that contained 25,000 trees. The value of the bare land was estimated to be $20,000. The annual percentage depletion factor for timber is 10%. In the first year of operation, the lumber company cut down 7000 trees. According to the cost depletion method, the depletion deduction for year 1 would be closest to: (a) $2000

(b) $7000 (c) $10,000

(d) $14,000