An individual with a sole proprietorship business recorded accounting profits for the year of $268,400. The following expenses were included in this profit amount: amortization expense - $78,500; warranty reserve - $4,500; cost of goods sold - $162,000 (ending inventory at market value of $985,000); meals and entertainment - $34,600. Additional data related to the business' operations during the year: expenses paid under warranty agreement - $3,200; ending inventory valued at cost - $994,000; allowable CCA for the year - $83,000.

What was the sole proprietorship's business net income for tax

purposes?

a) $282,500

b) $272,900

c) $279,300

d) $265,200

e) none of the above