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 1 (used for calculating taxes), how much would Builtrite's true net profits before tax increase in their income statement shown to the stockholders?

A) $0

B) $12,000

C) $28,000

D) $40,000