During the year, Jermak Company had taxable income of $14,000. Jermak had federal income tax expense of $2,500, entertainment expenses of $1,000, business meals with clients of $3,000, and an exclusion of $2,000. How much is Jermak's net income for the year?

a. $11,000

b. $17,000

c. $7,000

d. $21,000