Expensing the Cost of a Pencil Holder That Cost $1

Expensing the cost of a pencil holder that cost $1.25 instead of capitalizing it as a plant asset and depreciating it over its estimated useful life of 10 years:

A) violates the economic entity assumption.
B) violates GAAP since pencil holders are important assets.
C) is justified because of materiality.
D) is appropriate because of the stable dollar assumption.