Jack Software is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, and the allowed depreciation rates for such property are 33%, 45%, 15%, and 7% for Years 1 through 4. Revenues and other operating costs are expected to be constant over the project's 10-year expected life. What is the Year 2 cash flow?

Equipment cost (depreciable basis) $80,000

Sales revenues, each year $55,000

Operating costs (excl. deprec.) $15,000

Tax rate 40.0%

a. $35,000 b. $44,000 c. $57,100 d. $38,400