Nick Riviera Inc. is the maker of the Juice Loosener and Sun & Run. During the past year the company's sales were $3.4 million. The cost of its merchandise sold came to $1.7 million, and cash operating expenses were $394,000; depreciation expense was $108,000, and the firm paid $152,000 in interest on its back loans. Also, the corporation received $48,000 in dividend income but paid $30,000 in the form of dividends to its own common stockholders. Calculate the corporation's gross profits. $1,306,000 $1,046,000 $1,700,000 $1,016,000 $1,198,000