A Machine Is Purchased for $500,000 and Is Used Through

A machine is purchased for $500,000 and is used through the end of Year 2.The machine falls under asset class 43 with a capital cost allowance (CCA) rate of 30%.At the end of Year 2,the machine is sold for $75,000.What is the present value of the lost CCA tax shields if the firm's marginal tax rate is 40% and its cost of capital is 5%?

A) $37,050
B) $15,180
C) $37,950
D) $23,324
E) $25,714