Seeing Red has a new project that will require fixed assets of $875,000, which will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, and 11.52 percent, respectively. The company has a tax rate of 21 percent. What is the depreciation tax shield for Year 3?

Please show in excel

$35,280

$89,600

$32,256

$46,667

$56,000