During 2012, Martin Corporation sold merchandise costing $2,800,000 on an installment basis for $4,000,000. The cash receipts related to these sales were collected as follows: 2012, $1,600,000; 2013, $1,400,000; 2014, $1,000,000. If expenses, other than the cost of the merchandise sold, related to the 2012 installment sales amounted to $160,000, by what amount would Martins net income for 2012 increase as a result of installment sales?

Select one:

a. $1,440,000

b. $ 480,000

c. $ 360,000

d. $ 320,000