A piece of equipment has a cost basis of $10,000 and is classified as 5-year MACRS property. The MACRS rates for 5-year property are: Year 1: 20%, Year 2: 32%, Year 3: 19.2%, Year 4: 11.52%, Year 5: 11.52%, Year 6: 5.76%. Calculate the depreciation for Year 2.

A new machine generates $50,000 in gross annual income and requires$15,000 in operating expenses. In year 2, the depreciation deduction is $8,000. If the corporate tax rate is 21%, calculate the After-Tax Cash Flow for year 2.