George's Restaurant is considering the addition of a new refrigeration system that will cut annual food costs by $12,000. The system will cost $27,000 to purchase and install. This system is expected to have a 3-year life and will be depreciated to zero using straight-line depreciation. What is the annual net income for this project if the tax rate is 32%?

A. $880

B. $1,020

C. $1,240

D. $1,980

E. $2,040