Kellog Corporation is considering a capital budgeting project that would have a useful life of 4 years and would involve investing $152,000 in equipment that would have zero salvage value at the end of the project. Annual incremental sales would be $453,000 and annual cash operating expenses would be $300,500. The company uses straight-line depreciation on all equipment. Its income tax rate is 35%. The income tax expense in year 2 is: Multiple Choice $8,715 $57,505 $40,075 $31,360