During the current year, Jay Corporation, a calendar year personal service corporation, had operating income of income of $240,000, operating expenses of $200,000, a short-term capital gain of $9,500, and a long-term capital loss of $7,000. How much is Jay's income tax liability for the year? Assuming, corporate tax rate of 21%.

a. $5.775

b. $8,500

c. None of the above.

d. $8,750

e. $3,750