Tax rate Expected life of the project Investment required in equipment Salvage value of equipment. Annual sales... Annual cash operating expenses 30% $200,000 $0 $520.000 $360,000 13. 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. $33,000 B. $24,000 C. $48,000 D. $9,000