(Appendix 8C) Wollard Corporation has provided the following information concerning a capital budgeting project: Tax rate 30% Expected life of the project 4 Investment required in equipment $80,000 Salvage value of equipment $0 Annual sales $190,000 Annual cash operating expenses $130,000 One-time renovation expense in year 3 $30,000 The company uses straight-line depreciation on all equipment. The income tax expense in year 3 is: $3,000 $12,000 $18,000 $9,000

Please be detailed in your work - Thanks.