Assume That an Existing Piece of Equipment of a Firm

Assume that an existing piece of equipment of a firm is being depreciated at $10,000 a year under current tax laws. The firm is considering replacing it with a new machine that will be
Depreciated at $15,000 a year. What will be the annual tax savings on the incremental
Depreciation provided by the new machine if the firm is in a 40% marginal tax bracket?

A) $3,000
B) $9,000
C) $2,000
D) $6,000