A company reported gross profit of $20 million in 2018. In addition, it recorded the following activities: Sales and marketing expenses were $5 million. Interest income was $2 million. Sold equipment for $5 million that had a net book value of $9 million. $3 million in preferred stock issuance. Companys tax rate is 40%. Calculate the companys net income.

A. $5.4 million

B. $6.0 million

C. $6.8 million

D. $7.2 million

E. $7.8 million