The bake shop is purchased a new machine is expected produce a MACRS depreciation deduction in three years of $50,000. The company has a 12% after-tax minimum required rate of return and is subject to a 30% income tax rate.

PV factor:

Year PV at $1 at 12% PV of an ordinary annuity at 12%

1 0.893 0.893

2 0.797 1.690

What is the discounted benefit of the depreciation deduction for the third year?

A: $0

B:$10,680

C: 24,920

D: 35,000

E:35,600