1. D Corp, producer of the worlds finest breakfast ice creams, buys new ice cream making equipment with cash. The equipment was placed into service on Jan 1 2019 and cost $10,000. The machine produces a positive, taxable, cashflow of $8,000 per year. Assuming D s tax rate is 21%, what is the after-tax cash flow in 2020? Ignore NPV, Bonus depreciation, and Section 179. NO EQUIPMENT LIFE is METIONED

1. 6,620
2. 6,834
3. 6,845
4. 7,900
5. None of the Above