A firm is purchasing a new file server for $ 680000 with a 4-year expected life and a salvage value of $ 50000. It is expected that the new server will generate an additional $200000 in revenue each year. The firm will use the straight line method to depreciate the server for financial reporting, but the sum-of-year’s digits (SYD) method for tax purposes. How much tax will be payable in year two, assuming a 35 percent tax rate
A.