ABC company is considering the acquisition of machine which belongs to a class with CCA rate of 46%. The cost of the machine is $1,356,000. The expected economic life is 9 years. Salvage value is $216,000. The discount rate is 7.40% and the marginal tax rate is 30%. Assume the half-year rule applies. What is the CCA tax shield for year 2?

a.

$101,049

b.

$144,089

c.

$336,830

d.

$480,295

e.

$313,236