Emery Inc. Had $ 5 million of gross income, operating expenses of $ 1 million, paid $ 1 million of interest on borrowing of $ 10 million, and paid a dividend of $ 0.5 million. Emory Inc's taxable income is ________
a) $ 3 million
b) $ 2.5 million
c) $ 4 million
d) $ 3.5 million