The Lumber Yard is considering adding a new product line that is expected to increase annual sales by $372,000 and expenses by $260,000. The project will require $169,000 in fixed assets that will be depreciated using the straight-line method to a zero book value over the 9-year life of the project. The company has a marginal tax rate of 35 percent. What is the depreciation tax shield?

$39,200

$18,308

$15,167

$14,467

$6,572