Freiman Corporation is considering investing in a project that would have a 4 year expected useful life. The company would need to invest $164,000 in equipment that will have zero salvage value at the end of the project. Annual incremental sales would be $510,000 and annual cash operating expenses would be $290,000. In year 3 the company would have to incur one-time renovation expenses of $94,000. Working capital in the amount of $10,000 would be required. The working capital would be released for use elsewhere at the end of the project. The company uses straight-line depreciation on all equipment. The income tax expense in year 2 is: Assume income tax rate is 30% $53, 700 $50, 700 $30, 300 $25, 500