Suppose an Asset Is Classified as a 3-Year Asset for Tax

Suppose an asset is classified as a 3-year asset for tax purposes, but has a useful life of 5 years. If the asset has an initial cost of $20,000, the depreciation tax shield for the fifth year of the asset's useful life if the tax rate is 35 percent is closest to:

A) $0.00
B) $2,333.10
C) $3,111.50
D) $7,000.00
E) $8,890.00