Bonomo Corporation has provided the following Information concering a capital budgeting project: Tax rate Expected life of the project Investment required in equipment Salvage value of equipment Annual sales Annual cash operating expenses One-time renovation expense in year 3 $ 72,000 $ 0 $ 260,000 $ 169,000 $ 32,000 The company uses straight-line depreciation on all equipment. The income tax expense in year 3 is