Jane's Floor Care Is Contemplating the Acquisition of Some New

Jane's Floor Care is contemplating the acquisition of some new equipment for refinishing wood floors.The purchase price is $74,000.The firm uses MACRS depreciation which allows for 33.33 percent,44.44 percent,14.82 percent,and 7.41 percent depreciation over years 1 to 4,respectively.The equipment can be leased for $24,600 a year.The firm can borrow money at 9.5 percent and has a 34 percent tax rate.What is the amount of the depreciation tax shield in year 4?

A) $1,758.09
B) $1,864.36
C) $1,940.80
D) $2,011.67
E) $2,221.08