Lucifer Morningstar generates sales of $80,000, costs of $48,000, depreciation of $20,000, and a 34% tax rate. Which one of the following is the correct method of computing the operating cash flow using the tax shield approach?

Select one:

a. ($80,000 - $48,000)(1 - .34) + ($20,000)(.34)

b. $80,000 - $48,000 - ($80,000 - $48,000 - $20,000)(.35)

c. ($80,000 - $48,000 - $20,000) - ($80,000 - $48,000 - $20,000)(1 - .35)

d. ($80,000 - $48,000)(.34) + ($20,000)(1 - .34)

e. ($80,000 - $48,000 - $20,000) - ($80,000 - $48,000 - $20,000)(.35)