Kim Possible established XYZ Merchandising on January 1, 2021. She bought land worth 3,000,000 with a building worth 750,000 and some store equipment with an acquisition cost of 80,000 and a fair value of 95,000. Sales during the year amounted to 500,000 (excluding Sales discounts amounting to 20,000 and Sales returns of 7000), while utility expense amounted to 85,000. Rick withdrew 7,000 on July 1, 2020, to buy an anniversary gift for his wife. How much was the Net Income?  a. 400000 b. 388000 c. 385000 d. 380000 ​