Bonomo Corporation has provided the following information concerning a capital budgeting project: 30% $ 92,000 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 $ 385,000 $ 261,800 $ 41,000 The company uses straight-line depreciation on all equipment. The income tax expense in year 3 is: $12,300 $6,900 $17760 $13,800