The Lumber Yard is considering adding a new product line that is expected to increase annual sales by $297,000 and expenses by $200,000. The project will require $109,000 in fixed assets that will be depreciated using the straight-line method to a zero book value over the 6-year life of the project. The company has a marginal tax rate of 35 percent. What is the depreciation tax shield?

Answer choices:

• $11,808

• $6,358

• $17,325

• $11,667

• $33,950