Sinco Company had $300,000 of income from business operations and $700,000 of allowable expenses. It also received $20,000 in dividends from a domestic corporation in which it owns 22 percent of the stock. What is Sinco Company’s net operating loss?

a. $393,000

b. $396,000

c. $397,000

d. $400,000

e. None of the above