ABC company is considering the acquisition of machine which belongs to a class with CCA rate of 40%. The cost of the machine is $1,188,000. The expected economic life is 7 years. Salvage value is $150,000. The discount rate is 6.60% and the marginal tax rate is 20%. Assume the half-year rule applies. What is the CCA tax shield for year 2?
 

a.
$190,080

b.
$76,032

c.
$380,160

d.
$57,024

e.
$285,120