Mahan Corporation expects total sales to increase by 20% over the next year. The corporation has no spare capacity and must increase plant and equipment by 20%. The corporation currently has $100,000 in assets, $40,000 in debt, and $60,000 in equity. The corporation desires to maintain the debt-equity ratio. The corporation's debt will be

1. 72,000

2. 40,000

3. 48,000

4. 60,000