Question: Seeing Red has a new project that will require fixed assets of $895,000, 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 $895,000, 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?

$52,208
$36,086
$62,650
$36,086
$100,240

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