Two years ago, Everson purchased new office equipment for use in his hardware business. The cost of the equipment was $18,000, and freight, delivery, and installation costs totaled $2,200. He received a first-year cost recovery deduction of $2,887 and a second-year cost recovery deduction of $4,947. What is Everson's adjusted basis in the equipment? A) $20,200 B) $12,366 C) $18,000 D) $10,166