Calgary Industries is preparing a budgeted income statement for 2015 and has accumulated the following information. Predicted sales for the year are $770,000 and cost of goods sold is 40% of sales. The expected selling expenses are $85,000 and the expected general and administrative expenses are $94,000, which includes $27,000 of depreciation. The companies income tax rate is 30%. The budgeted net income for 2015 is:
a) $462,000.
b) $198,100.
c) $84,900.
d) $283,000.
e) $85,500.