Last year Sanderson, Inc. had sales of $3.2 million. The firm's cost of goods sold came to $2.2 million, its operating expenses excluding depreciation of $102,000 were $395,000. What is Sanderson, Inc.'s taxable income based on the given information?
(a) $305,000
(b) $1,702,000
(c) $3,200,000
(d) $2,098,000