1-. LSP recently reported $400,000 of sales during the year 2016. The company had $40,000 of outstanding bonds carrying 10% interest rate. Operating costs were $160,000 other than depreciation, and the firm was facing $24,000 as depreciation. Noting that the federal-plus-state income tax rate was 40%. What is the firm's net income at the end of the year 2016?*

$ 107,200

$ 190,800

$ 127,200

$ 0

None of the above