Company COMII has RNOA of 8% and its tax rate is 40%. Its net operating assets (NOA) of $600,000 entirely financed by equity. The management is considering to finance an extension costing $300,000. It expects its RNOA to remain unchanged.

If COMII finance the extension by $100,000 in bonds with a coupon of 8% annually and $200,000 in equity, find the net income.