Please show work and reasoning. I don't believe interest paid or dividends should be included, but I'm confused. Thank you (2021).

Mrs. Ford, who has a 37% marginal tax rate, is the sole shareholder and CEO of Fast Inc. She also holds a $1,000,000 interest-bearing note issued by Fast. The corporations current-year financial records show the following: Sales revenue: $ 1,879,000 Mrs. Fords salary (160,000) Other operating expenses: (414,000) Interest paid on Mrs. Fords note: (60,000) Dividend paid to Mrs. Ford: (100,000) Compute Fast Incs taxable income.

Select one: a. $1,145,000 b. $1,245,000 c. $1,305,000 d. $1,465,000