Question: Seeing Red has a new project that will require fixed assets of $879,000, which will be depreciated on a 5-year MACRS schedule. The annual depreciation

Seeing Red has a new project that will require fixed assets of $879,000, which will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, and 11.52 percent, respectively. The company has a tax rate of 21 percent. What is the depreciation tax shield for Year 3?

Multiple Choice

$70,320
$35,441
$112,512
$40,504
$58,600

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