2. Taxpayer, who is a corporation, engaged in the following activities during taxable year 20X1: 1. Received $500,000 in service revenue and incurred $350,000 in operating expenses. 2. Received $5,000 in interest on bonds from the city of Chicago, Illinois. 3. Sold a building not used in operations for $800,000. The adjusted basis of the building is $600,000. Determine the gross income of the corporation for 20X1.

Select one:

a. $350,000

b.$205,000

c.$155,000

d.$355,000