The Islands Tanning Spa Acquired Its Tanning Beds from the Franchisor

The Islands Tanning Spa acquired its tanning beds from the franchisor for $125,000. The equipment will last for six years. If the CCA is 30% for tanning beds, the company's tax rate is 35% and the company's discount rate is 9%, what is the present value of The Islands tax shield?

A) $7,175
B) $20,500
C) $27,314
D) $29,398
E) $43,750