A corporation plans to raise $1,500,000 for an expansion project through combination of debt (60%) and fixed dividend preferred shares (40%). The interest rate on the debt will be 9% and the fixed rate on the preferred shares will be 7%. The corporation's combined federal and provincial tax rate is 38%. How much income will the corporation have to generate to pay for the financing of its expansion?

A. $198,387

B. $123,000

C. $148,742

D. $120,000

E. none of the above