The price of a public address system purchased by a local town hall was $42,500. It cost $2,100 for delivery. The salvage value at the end of 4 years is $7,500. Using the straight-line depreciation method, calculate the annual depreciation for year 3.

a. $11,368.20

b. $9,275.00

c. $10,365.75

d. $9,324.50