Your company is contemplating the purchase of a large stamping machine. The machine will cost $180,000.

With additional transportation and installation costs of $5,000 and $10,000, respectively, the cost basis for depreciation purposes is $195,000. Its MV at the end of ve years is estimated as $40,000. The IRS has assured you that this machine will fall under a three-year MACRS class life category. The justications for this machine include $40,000 savings per year in labor and $30,000 savings per year in reduced materials. The before-tax MARR is 20% per year, and the effective income tax rate is 40%. The taxable income for year three is most nearly:

(Please show excel work, thank you!)

	a.	$5,010
	b.	$16,450
	c.	$28,880
	d.	$41,120
	e.	$70,000