Derek Correia founded Correia Merchandising on June 1. During its first year, the company had sales of $350,000, a cost of goods sold of $180,000, and operating expenses (not including depreciation) of $100,000. The company estimates its income taxes expense will be approximately 35% of income before taxes. The company's equipment, all of which was purchased on June 1, cost $95,000, with an estimated residual or salvage value of $5,000, and a useful life of five years. Assuming that Correia Merchandising uses the straight-line depreciation method, calculate the companys gross profit for its first year ended May 31.

	a.	$180,000
	b.	$170,000
	c.	$530,000
	d.	$33,800
	e.	$350,000