Tracy, Inc. adjusts its books each month but closes its books at the end of the year. The trial balance at July 31 before adjustments is as follows:

	Debit	Credit
Cash	$12,920
Accounts Receivable	9,620
Supplies	1,400
Prepaid Insurance	3,120
Equipment	26,000
Accumulated Depreciation - Equipment		$10,400
Unearned Service Revenue		6,500
Capital Stock		7,190
Retained Earnings		23,500
Dividends	1,560
Service Revenue		16,510
Wages and Salaries Expense	7,800
Utilities Expense	380
Rent Expense	1,300
	$64,100	$64,100

If the equipment had an estimated useful life of five years and no salvage value, what is its book value at July 31, after the proper monthly July adjustment is recorded? (PLEASE INCLUDE MATH TO SOLUTION OF HOW YOU GOT YOUR ANSWER)

a. $10,400

b. $25,567

c. $15,167

d. $10,833