last multiple choice is 30,100

Kellog Corporation is considering a capital budgeting project that would have a useful life of 4 years and would involve Investing $140,000 in equipment that would have zero salvage value at the end of the project. Annual incremental sales would be $432,000 and annual cash operating expenses would be $287,000. 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 O $8.400 $55.300 O $38,500