Emery Mining Inc. recently reported $120,000 of sales, $75,500 of operating costs other than depreciation, and $10,200 of depreciation. The company had $16,500 of outstanding bonds that carry a 7.25% interest rate, and its federal-plus-state income tax rate was 35%. How much was the firm's net income? The firm uses the same depreciation expense for tax and stockholder reporting purposes.
a. $23,454.01
b. $21,517.44
c. $20,441.57
d. $26,681.62
e. $18,074.65