Magenta Company provided the following information from its income statement:

Line Item Description	Numerical Value
Net sales	$120,000
Cost of goods sold	40% of sales
Operating expense	14% of sales

Using the information above, calculate net income (net loss) for Magenta Company. Assume the income tax rate is 40%.

a. ($3,700)

b. $46,000

c. $42,300

d. $33,120