Builtrite had sales of $700,000 and COGS of $300,000. In addition, operating expenses were calculated at 25% of sales. Builtrite also received dividends of $40,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $80,000 was realized during the year along with a capital loss of $60,000 Based on their taxable income calculated in question 4 (used for calculating taxes), how much would Builtrite's TRUE net profits before tax increase in their income statement shown to the stockholders?

Group of answer choices

$0

$12,000

$28,000

$40,000