Colorform Company is considering the purchase of the following computer equipment, which is considered 5-year property for tax purposes:

Acquisition cost	$400,000
Annual cash flow	$140,000
Annual operating costs	$ 20,000
Expected salvage value	$ 0
Cost of capital	10%
Tax rate	40%

Colorform Company plans to use MACRS and keep the production equipment for seven years. (Round amounts to dollars.) Tax savings from depreciation in Year 3 would be