Bonomo Corporation has provided the following information concerning a capital budgeting project: Tax rate 30% Expected life of the project 4 Investment required in equipment $160,000 Salvage value of equipment $ 0 Annual sales $420,000 Annual cash operating expenses $300,000 One-time renovation expense in year 3 $ 50,000 The company uses straight-line depreciation on all equipment. The income tax expense in year 3 is: $24,000 $15,000 $36,000 $9,000