The following is the Statement of Income and Expenses of Corporation Luna for the year ended December 31, 2020:

CORPORACION LUNA

Statement of Income and Expenses

For the year ended December 31, 2020

INCOME Base Books

Sales $ 850,000

Cost of goods sold (400,000)

Gross margin 450,000

Interest income - Corporation Sale Plus Bonds 1 10,000

Interest income - Savings certificate 1,000

Interest income - New York City Bonds 20,000

Total Income 481,000

EXPENSES

Salaries - General 2 100,000

Salaries - University youth 3 20,000

Professional services 2 70,000

Food and entertainment 10,000

Travel 5,000

Mortgage loan interest 20,000

Automobile depreciation 4 10,000

Other administrative expenses 200,000

Total Expenses 435,000

Net Income Before Taxes 46,000

Less: Income Tax Expense (8,280)

Net Income $ 37,720

NOTES:

1. Corporation Venta Plus is a private corporation.

2. The corporation submitted to the Department of the Treasury all informative returns that support the salaries and professional services paid during the taxable year.

3. The salaries paid in this line meet the requirements established by law so that the corporation can claim the special deduction of "salaries paid to university youths".

4. This expense presents the depreciation of a single company car, acquired on January 2, 2018, whose cost was $ 50,000 and its depreciation is calculated using a straight line over a useful life of five (5) years. SPECIAL NOTE: Look for the Instructions Booklet for the Corporate Income Tax Return and study how current depreciation is calculated for an automobile, for tax purposes. Determine the Total Income, TAX BASE, after applying the rules for converting books to taxes. NOTE: Only analyze the items that are under the INCOME Section.

Select one:

a. $ 451,000

b. $ 471,000

c. $ 481,000

d. $ 461,000