Katie's Cafe Is Considering the Addition of a New Refrigeration

Katie's Cafe is considering the addition of a new refrigeration system that will cut annual food costs by $15,001. The system will cost $36,000 to purchase and install. This system is expected to have a 3-year life and will be depreciated to zero using straight-line depreciation. What is the annual net income for this project if the tax rate is 34%?

A) $880
B) $1,020
C) $1,240
D) $1,750
E) $1,980