Meric Mining Inc. recently reported $19,750 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 35%.

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. $6,931.64 b. $6,938.24 c. $6,925.04 d. $6,918.44 e. $6,911.84