Meric Mining Inc. recently reported $15,750 of sales, $7,500 of operating costs other than depreciation, and $1,200 of depreciation. The company had no amortization charges, it had outstanding $6,500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 25%. How much was the firm's net income after taxes? Meric uses the same depreciation expense for tax and stockholder reporting purposes.

Select the correct answer.

a. $4,979.01

b. $4,975.21

c. $4,977.11

d. $4,980.91

e. $4,982.81