The current net income of Thompson Company is$290,000, and10,000 shares of common stock have been issued. The company is considering a project that requires$350,000 and would issue bonds payable at6%. Management believes that the funds raised can be used to increase income before interest and taxes by$350,000 per year. The current tax rate is40%. What would be the amount of total projected net income if the new project is added to the currentprojects?

A.

$500,000

B.

$487,400

C.

$479,000

D.

$619,000