The 2017 income statement for the Clothing Division of Tom Ron Surf Company is as follows:

Sales $445,000

Operating expenses 270,000

Net operating income 175,000

Interest expense 35,000

Earnings before taxes140,000

Income tax expense (30%)42,000

Net income $98,000

How much is net operating profit after taxes?

A $73,500

B $122,500

C $108,500

D $133,000