HMP Inc. reported the following information:

Net sales (U.S. production)$550,000Cost of goods sold300,000Operating expenses100,000W-2 wages for the year(included in cost of goods sold and operating expenses)80,000

What is HMP's taxable income?

Question 2 options:

1)

$136,500

2)

$142,800

3)

$150,000

4)

$157,200