Certain new machinery when placed in service its estimated cost basis was $200,000. It was expected to reduce net annual operating expenses by $40,000 per year for 10 years and to have a $20,000 MV at the end of the 10th year. Annual expenses are $10,000; the federal and state income tax rate is 35% and 10% respectively. Develop the ATCF for year 2 and use the Straight Line depreciation method. The MARR is 10%. $17, 550 $117,000 $7, 020 $23, 400