Calgary Industries is preparing a budgeted income statement for 2015 and has accumulated the following information. Predicted sales for the year are $680,000 and cost of goods sold is 40% of sales. The expected selling expenses are $76,000 and the expected general and administrative expenses are $85,000, which includes $18,000 of depreciation. The companies income tax rate is 30%. The budgeted net income for 2015 is:

$408,000.

$172,900.

$247,000.

$84,700.

$74,100.