A lumber company purchases and installs a wood chipper for \(\$ 200,000\). The chipper is classified as MACRS 7-year property. Its useful life is 10 years. The estimated salvage value at the end of 10 years is \(\$ 25,000\). Using MACRS depreciation, compute the first-year depreciation.

a. \(\$ 17,500\)

b. \(\$ 20,000\)

c. \(\$ 25,007.50\)

d. \(\$ 28,580\)