Madison Metals recently reported $9,000 in sales, $6,000 in operating costs other than depreciation, and $1,500 of depreciation. The company has no amortization charges and no non-operating income. It had issued $4,000 in bonds that carry a 7% interest rate, and its federal-plus-state income tax rate was 40%. What was the firm’s taxable, or pre-tax, income?
a. $1180
b. $1220
c. $1260
d. $1300
e. $1340