At the end of 2019, the Company announced it had produced a gross profit of $1 million. The company has also established that over the course of this year it has incurred $345,000 in operating expenses and $125,000 in interest expenses. The company is subject to a 30 percent tax rate.

1. How much is the net income?

A. $560,000

B. $371,000

C. $824,000

D. $471,000

2. How much is the operating income (earnings before interest and taxes)?

A. $526,000

B. $371,000

C. $655,000

D. $722,000