Tax rate ....... Expected life of the project .............. Investment required in equipment Salvage value of equipment. Annual sales.. Annual cash operating expenses. 30% 4 $200.000 SO $520.000 $360.000 15. Strathman Corporation has provided the information shown concerning a capital budgeting project. The company uses straight-line depreciation on all equipment. How much is the income tax expense in year 2? A. $24,000 B. $48,000 C. $9,000 D. $33,000