Valley Citrus products recently reported revenues of $345,000, cost of goods sold of $185,000, administrative expenses of $50,000 and depreciation of $25,000. The company has $1,000,000 of outstanding debt with 4% interest rate. If the firms average state plus rate is 25%, what is the net income?

a. $33,750

b. $18,750

c. $71,250

d. $59,925

e. $61,200