Your company is contemplating the purchase of a large stamping machine. The machine will cost $181,000. With additional transportation and installation costs of $7,000 and $8,000, respectively, the cost basis for depreciation purposes is $196,000. Its MV at the end of five years is estimated as $50,000. The IRS has assured you that this machine will fall under a three year MACRS class life category. The justifications for this machine include $42,000 savings per year in labor and $26,000 savings per year in reduced materials The before-tax MARR is 12% per year, and the effective income tax rate is 45%. What is the taxable income for year three? Click the icon to view the GDS Recovery Rates () for the 3-year property class. A. The taxable income for year three is $68,000. d B. The taxable income for year three is $41,194. C. The taxable income for year three is $38,972. O D. The taxable income for year three is $14,524. OE. The taxable income for year three is $29,028