Suppose a Company Has Equipment That Had an Original Cost

Suppose a company has equipment that had an original cost of $15,000, and it sells this equipment 5 years later for $5,000. If the carrying value of this equipment for tax purposes is $2,000 and the company's marginal tax rate is 25 percent, the tax on the depreciation recapture associated with the sale of this equipment is closest to:

A) $750
B) $2,000
C) $2,500
D) $3,000
E) $4,250