Glenn Corporation wants to acquire a depreciable asset with an original cost of $98,000 on January 1, 2020. It has an estimated life of 4 years, and an estimated salvage value of $16,000. Straight line depreciation will be used. Glenns tax rate is 40%. Annual net income is expected to be $15,400. How much is the annual depreciation tax shield?

A $8,200

B $16,650

C $32,800

D $20,500